Japan Market gains on cheap yen, trade optimism

Headline indices of the Japan share market advanced on Tuesday, 29 October 2019, as appetite for risk assets underpinned on tracking rallies on Wall Street, supported by rising optimism for a trade deal with China combined with a relatively cheaper yen against the dollar. At closing bell, the 225-issue Nikkei Stock Average was up 106.86 points, or 0.47%, to 22,974.13, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange added 14.25 points, or 0.86%, at 1,662.68.

Total 28 issues of the 33 industry category of Topix index inclined into positive territory, with Other Financial Business, Nonferrous Metals, Precision Instruments, Iron & Steel, Glass & Ceramics Products, and Insurance issues being notable gainers, while Air Transportation, Electric Power & Gas, and Land Transportation issues were notable losers.

 

Market commenced trading with firm footing on the back of improvement on the U.S.-China trade front after the U.S. and Chinese officials said they were close to finalizing some parts of a trade agreement. US President Donald Trump yesterday repeated his confidence that Washington and Beijing are moving towards a partial phase one trade deal, which he expects to sign on the sidelines of the Apec summit in Santiago in mid-November.

Shares of exporters inclined as a risk-on sentiment prompting the dollar to edge up against the yen. In Asia, the dollar fetched 108.96 yen against 108.95 yen in New York. Among major exporters, Toyota was up 0.3%, Nissan gained 1.6%, and Honda grew 0.7%. Sony was up 0.9% and Panasonic was up 0.3%.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, was tad softer against greenback. The Japanese yen traded at 108.97 against the dollar after weakening from levels below 108.9 in the previous session.

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