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Tokyo shares end at 4-1/2-month high, energy sector up

Published 17/09/2019, 08:26
© Reuters.  Tokyo shares end at 4-1/2-month high, energy sector up
JP225
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TOPX
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1605
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1963
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9984
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IAIRL.T
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IMING.T
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IPETE.T
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By Tomo Uetake

TOKYO, Sept 17 (Reuters) - Japan's Nikkei share average

inched up to a 4-1/2-month closing high on Tuesday, as soaring

oil prices triggered by attacks on Saudi crude facilities

boosted oil and gas-related companies.

The benchmark Nikkei average .N225 rose 0.1% to 22,001.32,

its highest close since April 26, marking the 10th consecutive

day of gains and the longest rally since October 2017.

The broader Topix .TOPX gained 0.3% to 1,614.58, also its

highest finish in 4-1/2 months.

Market players said risk appetite had not been affected in

spite of Saturday's attack on Saudi oil facilities.

Oil and gas-related companies led gains, with mining

.IMING.T and oil & coal products .IPETE.T the top two

performing subsectors on Tokyo's main bourse, jumping 9.0% and

4.5%, respectively.

Japan's biggest oil and gas developer Inpex Corp 1605.T

surged 9.7% and global engineering company JGC Corp 1963.T

climbed 5.6%.

On the flip side, airlines .IAIRL.T and shippers

.ISHIP.T - vulnerable to rising crude oil costs - were the

worst two performing sectors, declining 1.7% and 1.3%,

respectively.

Oil ended nearly 15% higher on Monday, with Brent logging

its biggest jump in over 30 years amid record trading volumes,

after the weekend attacks cut Saudi Arabia's production in half

and fanned fears of retaliation in the Middle East. Nikkei heavyweight SoftBank Group 9984.T shed 3.0% after

an office-sharing firm it backs delayed a planned listing.

WeWork owner, The We Company, said it expected to complete

its initial public offering by the end of the year, after

walking away from preparations earlier in the day to proceed

with its stock market debut this month. SBG is the

biggest backer of The We Company.

Investors broadly remained on the sidelines ahead of key

policy decisions by the U.S. Federal Reserve on Wednesday and

the Bank of Japan on Thursday.

U.S. President Donald Trump said on Monday that the United

States has reached initial trade agreements with Japan on tariff

barriers and digital trade, also supporting sentiment in the

Tokyo share market. (Editing by Jacqueline Wong)

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