Tokyo Stocks End Higher On Wall St. Rally, Easing Trade Tensions

Tokyo stocks rose Thursday, with the Nikkei index ending at a two-week high, as investors’ risk appetite grew on overnight advances by U.S. shares and easing global trade tensions.

The 225-issue Nikkei Stock Average ended up 197.53 points, or 0.87 percent, from Wednesday at 22,823.26. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 11.42 points, or 0.64 percent, higher at 1,789.01.

Gainers were led by securities house, chemical and miscellaneous product issues.

Shares had an upbeat start to the day following Wednesday’s third straight day of record highs for the U.S. Nasdaq Composite index and a jump by the Dow Jones Industrial Average to a three-month high.

Tokyo stocks continued to gain traction throughout the day as concern over a global trade war also receded somewhat after the Wall Street Journal reported that China had proposed an expansion of imports of U.S. farm, manufacturing and energy products worth nearly $70 billion, brokers said.

“Shares maintained their firmness despite the yen’s rise against the dollar, as I believe long-term investors including pension funds bought large-capital stocks such as Toyota Motor and Panasonic,” said Shingo Ide, chief equity strategist at the NLI Research Institute.

“Long-term investors bought these large shares as they bet on a possible surge following important political and financial events next week,” Ide added.

But a wait-and-see mood also prevailed in the market and capped stocks ahead of a series of key events, including the Group of Seven summit in Canada later this week and the first-ever U.S.-North Korea summit next week, brokers said.

Chemical issues drew buying following the robust performance of U.S. counterparts overnight, with Showa Denko rising 195 yen, or 4.2 percent, to 4,890 yen, as well as Mitsui Chemicals climbing 65 yen, or 2.1 percent, to 3,235 yen.

Ube Industries ended flat, up 10 yen, or 0.3 percent, at 3,185 yen, after the chemical product maker’s announcement that it had falsified product data since the 1970s.

Conveyer belt sushi restaurant operator Kura Corp. soared 900 yen, or 12.6 percent, to 8,060 yen after the company said Wednesday operating profit over a six-month period through April rose 21.7 percent from a year before to 3.78 billion yen ($34.3 million).

On the First Section, advancing issues outnumbered declining ones 1,555 to 462, while 67 ended the day unchanged.

Trading volume on the main section rose to 1,434.15 million shares from Wednesday’s 1,389.76 million shares.

This article provided by NewsEdge.