Nikkei stretches winning streak to seventh session
Hopes for progress in U.S.-China trade negotiations continued to encourage investors to purchase Tokyo stocks on Wednesday, allowing the benchmark Nikkei average to rise for the seventh straight market day.
The 225-issue Nikkei average rose 205.66 points, or 0.96 percent, to end at 21,597.76, after advancing 73.68 points on Tuesday. The seven-session winning streak was last achieved in late November to early December last year.
The Topix index of all issues listed on the Tokyo Stock Exchange’s first section finished up 25.67 points, or 1.65 percent, at 1,583.66. It gained 6.88 points the previous day.
Investors were particularly heartened by a South China Morning Post report saying, “China has offered to buy American products in exchange for a delay in a series of U.S. tariffs and easing of a supply ban against Chinese telecommunications giant Huawei Technologies.”
Both the Nikkei and Topix indexes went up further in the afternoon, propelled by the yen’s weakening against the dollar.
“In view of the Nikkei rising comfortably above 21,500, call option sellers took to the buy side ahead of Friday’s special quotation fixing” to settle September index futures and options contracts, Hiroaki Kuramochi, chief market analyst at Capital Partners Securities Co., said.
“The market is rebounding after excessively pricing in an economic slowdown in the United States last month,” an official of a major securities firm said.
But some brokerage house officials pointed to the possibility of “selling on a rally” gaining strength from now on.
Rising issues outnumbered falling ones 1,845 to 264 on the first section, while 42 issues were unchanged.
Volume rose to 1.69 billion shares from Tuesday’s 1.42 billion shares.
Financials attracted purchases thanks to a rise in U.S. long-term interest rates. Major gainers included mega-bank group Mitsubishi UFJ and brokerage firm Nomura.
Cyclicals such as shipping firms rose on buying by investors anticipating a U.S.-China trade deal.
Among other winners were mobile phone carrier KDDI and daily goods maker Kao.
On the other hand, realtors were lower, with Mitsui Fudosan down 1.61 percent and Mitsubishi Estate down 1.62 percent.
Also on the negative side were clothing store chain Fast Retailing and technology investor SoftBank Group.
In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average gained 210 points to end at 21,560.