Nikkei hits nearly 27-year high on robust U.S. stocks

By Japan Economic Newswire

The Nikkei stock index on Monday morning briefly hit its highest level in nearly 27 years as investors were heartened by a rise in U.S. stocks late last week and expectations of a U.S.-Canada trade deal.

The 225-issue Nikkei Stock Average gained 143.03 points, or 0.59 percent, from Friday to 24,263.07. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 3.42 points, or 0.19 percent, at 1,820.67.

Gainers were led by mining, oil and coal product, and textile and apparel issues.

Shares opened mixed as selling on weaker-than-expected business sentiment among large Japanese manufacturers in the Bank of Japan Tankan survey released shortly before the opening bell was offset by buying amid expectations that the United States and Canada will reach an agreement to revise the North American Free Trade Agreement.

But stocks turned higher later in the morning, with the Nikkei index hitting its highest level in around 27 years on the yen’s retreat against the dollar, dealers said.

“As soon as reports related to the U.S.-Canada trade deal came out, buying of stocks accelerated,” said Yutaka Miura, senior technical analyst at Mizuho Securities Co.

“The Nikkei index was also lifted by heavyweights, mainly semiconductor-related issues, such as Tokyo Electron and Advantest,” said Chihiro Ota, general manager of investment research at SMBC Nikko Securities Inc.

Tokyo Electron advanced 510 yen, or 3.3 percent, to 16,120 yen, with Advantest climbing 100 yen, or 4.2 percent, to 2,493 yen.

On the First Section, advancing issues outnumbered decliners 1,152 to 862, while 91 ended the morning unchanged.

This article provided by NewsEdge.