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Japan Nikkei climbs as trade war fears ebb

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Capital Market
Last Updated : Aug 27 2019 | 12:50 PM IST
Headline indices of the Japan share market closed higher on Tuesday, 27 August 2019, as investors chased for bottom fishing, thanks to positive lead from Wall Street overnight after US President Donald Trump's upbeat comments on a possible China trade deal and yen depreciation against greenback. At closing bell, the 225-issue Nikkei Stock Average advanced 195.04 points, or 0.96%, to 20,456.08, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange added 11.66 points, or 0.8%, at 1,489.69.

Total 31 sub-indexes out of 33 sub-indexes of Topix index industry category retreated into positive territory, with Rubber Products, Information & Communication, Retail Trade, Pulp & Paper, and Transportation Equipment issues being notable gainers, while Insurance, and Fishery, Agriculture & Forestry issues were notable losers.

US President Donald Trump on Monday flagged the possibility of a trade deal with China and said he believe Beijing was sincere in its desire to reach an agreement. His comments helped temper sharp losses in global markets after both sides announced new tariffs on Friday, in the latest escalation in the protracted trade dispute.

Investors will watch for further developments on the ongoing trade war between Beijing and Washington. Apart from the trade war, the equity markets also have to keep an eye on Brexit proceedings, monetary policy of key players such as the European Central Bank and moves in the Chinese yuan.

ECONOMIC NEWS: Japan Producer Prices Up 0.1% On Month In July - Japan producer prices were up 0.1% on month in July, the Bank of Japan said on Tuesday following the 0.1% decline in June. On a yearly basis, producer prices gained 0.5%, down from 0.7% in the previous month. Individually, prices were up on an annual basis for real estate services, leasing, advertising and transportation.

CURRENCY NEWS: The yen, a gauge of risk sentiment due to its perceived status as a safe haven, depreciated against greenback on Tuesday. The Japanese yen, often viewed as a safe-haven currency during times of market turmoil, traded at 105.69 against the dollar following a weakening from levels below 105 in the previous session.

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First Published: Aug 27 2019 | 12:31 PM IST

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