Japan Nikkei surges on easing global issues

Headline indices of the Japan share market skyrocketed on Thursday, 05 September 2019, amid an improvement in investor sentiment after a solid lead from Wall Street overnight on news that US-China trade talks will pick up again, easing worries over Brexit, and positive developments in the Hong Kong crisis. Around late afternoon, the 225-issue Nikkei Stock Average surged 464 points, or 2.25%, to 21,113.15, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange spurted 28 points, or 1.86%, at 1,534.85.

All 33 of the sectors of Topix index inclined, with Precision Instruments, Electric Appliances, Marine Transportation, Nonferrous Metals, Pulp & Paper, Machinery, Metal Products, and Iron & Steel issues being notable gainers.

 

Wall Street's main indexes rebounded on Wednesday, thanks to a survey on business conditions in the Federal Reserve's key districts which showed that economic activity in non-financial service sectors was either steady or improving. The Dow Jones Industrial Average had closed 237.45 points higher at 26,355.47, while the S&P 500 gained 1.1% to finish at 2,937.78. The Nasdaq Composite advanced 1.3% to 7,976.88.

Lawmakers in Britain's lower house of Parliament voted to approve legislation designed to prevent Prime Minister Boris Johnson's government from taking the country out of the European Union without a deal.

Chinese officials announced that they've agreed with the United States to hold another round of trade talks in Washington next month. China's Commerce Ministry on Thursday announced that the country's Vice Premier and chief trade negotiator Liu He has spoken with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, and that both sides agreed to meet in Washington in October. The two sides will continue talking before then, according to the Commerce Ministry. A spokesperson for Lighthizer's department confirmed the two sides talked and agreed to hold talks in the US capital "in the coming weeks."

In China, activity in the services sector expanded at the fastest pace in three months in August, providing a boost to the world's second-largest economy, which has been struggling to reverse a prolonged slump in its manufacturing sector.

The reports, subsequently confirmed, that Hong Kong leader Carrie Lam would formally withdraw a controversial extradition bill that sparked months of protests in the financial hub.

CURRENCY NEWS: The Japanese yen depreciated against greenback on Thursday, as demand for safe haven currency declined after global political worries eased with what markets perceived as positive news in Hong Kong, Italy and Britain. The Japanese yen, often seen as a safe-haven currency in times of turmoil, traded at 106.61 after easing from levels below 105.9 yesterday

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