This file photo shows the Tokyo Stock Exchange. (Mainichi)
TOKYO (Kyodo) — Tokyo stocks rose Wednesday for a fourth consecutive day after the United States and China agreed on a framework believed to center on easing restrictions on critical sectors following the conclusion of their trade talks.
The 225-issue Nikkei Stock Average ended up 209.68 points, or 0.55 percent, from Tuesday at 38,421.19. The broader Topix index finished 2.48 points, or 0.09 percent, higher at 2,788.72.
On the top-tier Prime Market, gainers were led by pulp and paper, metal product and service issues.
The U.S. dollar climbed to the lower 145 yen range in Tokyo, as concern about a U.S. economic slowdown eased after the world’s two largest economies reached an agreement over China’s export controls on rare-earth metals, which are critical in sectors such as automobile and smartphone production.
Stocks were initially lifted by heavyweight chip-related shares tracking rises on a key U.S. semiconductor index overnight.
The market was additionally supported by the U.S.-China agreement reached following two days of high-level talks in London, with one U.S. negotiator expressing a positive outlook over easing restrictions on minerals exports.
The United States is also likely to ease its export curbs on semiconductor-related products to China if Beijing relaxes restrictions.
“Despite a lack of concrete information from the agreement, investors seemed to be taking the view it signals good news will come on minerals and semiconductors,” said Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co.
Meanwhile, the market’s upside was capped as a wait-and-see mood prevailed before the release later in the day of key U.S. inflation data, which may offer hints on monetary policy decisions by the Federal Reserve.
AloJapan.com