Nikkei recuperates on trade pact optimism, steelmakers rally
TOKYO- Japan’s benchmark Nikkei found its momentum on Thursday brought by gains in steelmaking sector. Such followed after US President Donald Trump’s comments which encouraged market optimism on Sino-US trade talks.
The Nikkei 225 index acquired 0.89% gains to 23,346.05, rallying above the 25-day moving average of 23,275.
The broader Topix swiped in 0.5% to 1,711.80, making minimal difference against its 13-1/2 month high of 1,719.57 mark last month.
Topix Core 30, a network of firms on the main board, reached 14-month peak.
Trump disclosed that trade negotiations with Beijing were going “very well” hyping up investors’ appetite and overall market ambiance after reports surfaced that Washington and Beijing were in close communication as to how many tariffs would be removed.
Steelmakers were at the receiving end of market optimism as Tokyo Stock Exchange’s steel and iron index clocked in 2.9%, topping advancers board among industry sub-indexes.
Nippon Steel jumped with 3.8%, JFE Holdings with 3.4%, and Kobe Steel acquired 2.5%.
Semiconductor related shares recorded a well-ended performance beating the benchmark, with Sony gaining the most in over a year,
TDK inched up with 2.1% and Lasertec gained 0.6%, hitting all-time high.
Murata Manufacturing gained 1.1% boosted by reports that the firm will introduce new electronic parts for 5G smartphones.
Nintendo earned 0.1% and maintained its 1 ½-year high brought by optimism of profit rally once Switch game console is released next week in China.
Across medical sector, Astellas Pharma acquired 2.4, while Daiichi Sankyo earned 1.8%.