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Japan Market rises on Sino-U.S. trade war truce

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Capital Market
Last Updated : Oct 15 2019 | 9:50 AM IST
The Japan share market advanced on Tuesday, 15 October 2019, on tracking gains on regional market on Monday after the United States and China agreed to a limited trade deal in last week's high-level trade negotiations with construction-linked issues advancing after a powerful typhoon battered wide swathes of Japan over the weekend. Around afternoon trade, the 225-issue Nikkei Stock Average advanced 390.06 points, or 1.8%, to 22,188.93, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange grew 24.83 points, or 1.56%, at 1,620.10. The Japan share market closed on Monday, 14 October 2019, for public holiday.

Total 32 issues of the 33 industry category of Topix index inclined into positive territory, with Marine Transportation, Insurance, Pharmaceutical, Construction, Rubber Products, and Nonferrous Metals issues being notable gainers.

Investor risk sentiment got a boost on prospect of a trade deal after U.S. President Donald Trump on Friday outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike set to go into effect from 15 October 2019 . China, meanwhile, said it would increase purchases of U.S. agricultural products. As part of this phase, China will purchase between $40 billion and $50 billion in U.S. agricultural products. Trump also said the deal includes agreements on foreign-exchange issues with China. In exchange, the U.S. agreed to hold off on tariff hikes that were set to take effect Tuesday.

The emerging deal, covering agriculture, currency and some aspects of intellectual property protections, would represent the biggest step by the two countries in 15 months to end the tit-for-tat tariff war, though Trump said it could take up to five weeks to get a pact written. Trump and Chinese President Xi Jinping are both scheduled to attend the summit of the Asia Pacific Economic Cooperation (APEC) countries in Chile next month. Trump hinted that a written agreement could be signed there.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, was steady against greenback on Tuesday. The Japanese yen traded at 108.32, weakening from an earlier high of 108.28.

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First Published: Oct 15 2019 | 9:42 AM IST

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