INSUBCONTINENT EXCLUSIVE:
TOKYO:Japan's
Nikkei breached 23,000
on Tuesday thanks to the United-States-Mexico trade deal, then shed most of the gains on
profit-taking but still ended the day at its highest close since mid-June.
The
Nikkei share average finished the day up 0.1 percent at
22,813.47.
The United States and Mexico agreed
on Monday to overhaul the North American Free Trade Agreement (NAFTA), putting pressure on
Canada to agree to new terms on auto trade and dispute settlement rules to remain part of the three-nation pact.
"Investors are relieved on
receding trade worries but there are several other factors in the U.S
that are raising sentiment for the Japanese market," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley
economy is strong, its corporate earnings are bright while inflation is under control, so the environment is favourable for risky asset
investors."
He said one concern is that Japan's trading volume and turnover have been thin, even though hedge funds are seen buying back
Japanese stocks that they sold a few weeks ago.
"Unless trade becomes more active, the
Nikkei is unlikely to rise and stay above 23,000,"
Fujito said.
The broader Topix gained 0.2 percent
on Tuesday to 1,731.63
Advancing issues outnumbered decline ones 1,018 to 982.
Shares in Japan's top three automakers, which have plants in Mexico, rose
Toyota Motor Co advanced 0.9 percent, Nissan Motor Co climbed 1.3 percent and Honda Motor Co gained 1.3 percent.
Autoparts makers followed
suit, with Denso Corp up 2.3 percent, Aisin Seiki gaining 1.2 percent, and Jtekt Corp rising 1.8 percent.
Investors also took heart from
news that the Toyota group of companies said they would form a joint venture to develop software that manages brakes, steering and other
components for automated driving
