Tokyo’s Nikkei closes up nearly 1pc on US gains

File picture shows a woman holding an umbrella being reflected in an electronic stock quotation board outside a brokerage in Tokyo. — Reuters pic
File picture shows a woman holding an umbrella being reflected in an electronic stock quotation board outside a brokerage in Tokyo. — Reuters pic

TOKYO, Aug 14 — Tokyo’s benchmark Nikkei index gained nearly 1 per cent today, following rises on Wall Street, as concerns over the US-China trade row eased after President Donald Trump delayed tariffs on key Chinese goods.

The Nikkei 225 index climbed 0.98 per cent, or 199.69 points, to close at 20,655.13 while the broader Topix index was up 0.87 per cent, or 12.93 points, at 1,499.50.

Japanese shares took a positive lead from Wall Street where shares rallied after Washington delayed until December 15 a 10-per cent tariff for Chinese-made electronics, including items popular with holiday shoppers such as cell phones, laptops and video game systems.

“But today’s gain was just part of the recent ups and downs resulting from new developments in the US-China trade war,” said Yoshihiro Okumura, general manager at Chibagin Asset Management.

“The market is likely to remain unstable for now,” Okumura told AFP.

The dollar was trading at ¥106.46 in Asian afternoon trade, down from ¥106.74 in New York yesterday but up compared to ¥105.28 in Asian trade.

“The yen weakening to the ¥106 level against the dollar is also a plus,” said Yoshihiro Ito, Okasan Online Securities chief strategist.

A lower yen is positive for Japanese exporters as it makes their products more competitive outside Japan and also inflates profits when repatriated.

In Tokyo share trading, Nintendo surged 4.32 per cent to ¥40,070 following the US decision to delay tariffs.

Sony rose 0.44 per cent to ¥5,915 while IT investor SoftBank Group gained 1.40 per cent to ¥4,964.

Uniqlo chain operator Fast Retailing was up 1.40 per cent to ¥63,680. — AFP

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