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TOKYO: Japanese stock indexes hit multi-month highs on Friday as ebbing concerns about global trade tensions and bullish views on the US economy supported commodities and manufacturing firms.
The Nikkei share average gained 0.8 per cent to 23,869.93, the highest close since Jan.
24.
The next milestone is the 24,129.34 level hit on Jan.
23, a break of which would put the index at its highest since November 1991.
For the week, the Nikkei added 3.4 per cent.
Meanwhile, the broader Topix gained 0.9 per cent to hit a four-month high of 1,804.02.
Market analysts say gains have been supported by views the impact of the Sino-US trade war would be less harmful to global growth than initially feared.
Earlier this week, China added $60 billion worth of US products to its import tariff list, hitting back at US duties on $200 billion of Chinese goods that go into effect on Sept.
24.
"The market is focused more on the strong US economy and inflation expectations and is less worried about the impact from US-China trade conflict," said Naoki Fujiwara, a fund manager at Shinkin Asset Management.
He said investors are also looking ahead to the second round of trade talks between Japan and the US scheduled on Sept.
24.
"If the US says something provocative, it could dent the market temporarily but right now investors think the market will likely take this event in stride," Fujiwara said.
Japanese Economy Minister Toshimitsu Motegi said on Friday he would meet US Trade Representative Robert Lighthizer next week.
The meeting follows one in August in which the two sides failed to narrow differences on whether to open up negotiations for a bilateral free trade agreement.
Insurers and banks, which invest in high-yielding products such as foreign bonds, rallied as US 10-year yields remained comfortably above 3 per cent.
Dai-ichi Life Holdings jumped 3.5 per cent and TD Holdings rallied 3.3 per cent.
Sumitomo Mitsui Financial Group gained 1.5 per cent and Resona Holdings advanced 1.7 per cent.
Iron and non-ferrous metal stocks as well as shippers rallied on hopes the impact on demand from China as a result of trade frictions would be limited.
Nippon Steel Sumitomo Metal gained 1.6 per cent, JFE Holdings soared 3.1 per cent and Sumitomo Metal Mining jumped 3.8 per cent.
Shippers Kawasaki Kisen added 2.4 per cent and Mitsui OSK Lines surged 4.7 per cent.
Construction equipment makers, which have heavy exposure to China demand, were also steady.
Komatsu gained 3.4 per cent and Hitachi Construction Machinery soared 3.8 per cent.
(Editing by Sam Holmes)
