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Tokyo shares jump on US rallies

Aug 27 2019 10:00

Tokyo shares rebounded Tuesday, helped by rallies on Wall Street following US President Donald Trump's upbeat comments on a possible China trade deal.

The benchmark Nikkei 225 index added 0.96% to ¥20 456.08, while the broader Topix index gained 0.79% to 1 489.69.

The Nikkei stayed comfortably in positive territory throughout the day after Trump on Monday said the United States and China will resume their trade talks "very shortly", boosting Wall Street shares.

The comments came just as the world's two biggest economies exchanged biting tariffs.

Trump's comment, and the reaction of US markets, encouraged Tokyo players, who had already positioned themselves to buy bargains after the Nikkei plunged more than 2% on Monday on jitters over US-China trade relations.

"President Trump announced the resumption of US-China trade talks, sending US markets rising overnight. It encouraged buying (in Tokyo) and lifted the Nikkei," Okasan Online Securities said in a commentary.

"Coupled with a technical rebound after the sharp losses seen on the previous day, the market moved at a high range."

A solid rise on the Shanghai market also encouraged investors in Tokyo.

But a lack of other fresh incentives capped further gains, the brokerage said.

Slipping US yields were also pressuring the dollar, which stood at ¥105.70 in Tokyo, compared with ¥106.08 in New York but a tad higher than ¥105.24 in Tokyo on Monday.

Among major shares, SoftBank Group rose 2.42% to ¥4 647. Sony added 0.74% to ¥5 882, and Uniqlo operator Fast Retailing jumped 1.80% to ¥62 330.

Construction equipment maker Komatsu eased 0.16% to ¥2 222, while industrial robot producer Fanuc added 0.39% to ¥17 860.

equities  |  markets  |  tokyo stocks


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