INSUBCONTINENT EXCLUSIVE:
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
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
