TOKYO, Nov 5 — Tokyo’s benchmark Nikkei index jumped more than 1.7 per cent today to its highest level in nearly 13 months after Wall Street shares surged on optimism over US-China trade talks.
The Nikkei 225 index gained 1.76 per cent, or 401.22 points, to close at 23,251.99, the highest level since October 10 last year.
The broader Topix index was up 1.66 per cent, or 27.66 points, at 1,694.16.
The Japanese market opened higher after a three-day weekend, taking a positive lead from rallies in all three main US indices, analysts said.
Wall Street shares surged to fresh records, with analysts citing remarks from US Commerce Secretary Wilbur Ross that “phase one” of the trade agreement between Beijing and Washington was on track, and hinting that the United States may not impose tariffs on car imports from Europe and Japan.
“The Tokyo market doesn’t seem to be overheating,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.
“Japanese shares are still moving up, as positive factors are overwhelming negative ones,” Horiuchi told AFP.
The dollar fetched at ¥108.77 (RM4.13) in Asian afternoon trade, against ¥108.58 in New York yesterday.
Investors were also watching Japanese corporate earnings reports this week, with SoftBank Group due tomorrow and Toyota due on Thursday, analysts said.
Among major shares in Tokyo, automakers were higher, with Toyota gaining 1.28 per cent to ¥7,648 and Honda trading up 2.28 per cent at ¥3,022.
Mazda gained 2.11 per cent to ¥1,014 after it reported better-than-expected second-quarter operating profits.
Fujifilm surged 6.74 per cent to ¥5,066. After the market closed, it confirmed a news report that it will take 100 per cent ownership of Fuji Xerox by buying Xerox’s 25 per cent stake in the firm.
SoftBank Group jumped 2.43 per cent to ¥4,294.
Its mobile unit SoftBank Corp was down 0.13 per cent at ¥1,499. Following the closing bell, the company said its sales and profit rose for the six months to September, while leaving its full-year forecast unchanged. — AFP
