Total 21 issues of the 33 industry category of Topix index inclined into positive territory, with Mining, Precision Instruments, Pharmaceutical, Oil & Coal Products, and Air Transportation issues being notable gainers, while Iron & Steel, Rubber Products, and Textiles & Apparels issues were notable losers.
The market got a big confidence boost after Friday's announcement of a long-awaited "Phase 1" trade deal between the world's two biggest economies. The U.S. and China agreed last week to cut tariffs on some of each others' goods and postpone other tariff threats, the first time the two countries have stepped back from the brink in their 17-month trade fight. In return, China promised to ramp up its purchases of U.S. agricultural, energy and other goods and to stop forcing U.S. companies to turn over technology as a condition of doing business in that country. The trade pact removed some of the uncertainty that's hung over businesses and investors and has lifted prospects for the global economy.
Surprisingly strong economic reports out of China helped drive the rally. Growth in factory activity and retail sales in the world's second-largest economy both beat market expectations for last month. China's industrial production, which measures China's industrial output, including manufacturing, mining and utilities, grew by 6.2% in November, up from October's 4.7%. Meanwhile, retail sales grew by 8.0% in November, up from 7.2% a month ago.
CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, depreciated against greenback and other major currencies as news of an initial China-U.S. trade deal clear the fog on the global investment horizon, hurting safe-haven demand. The Japanese yen traded at 109.5 against the dollar, having weakened sharply from levels below 108.8 late last week.
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