TOKYO: Japan’s Nikkei share gauge climbed for a fourth straight session on Wednesday after US and Chinese officials agreed on a framework to put their trade truce back on track and remove China’s curbs on rare earths, supporting demand for risk assets.
Chip-sector heavyweights Sumco and Tokyo Electron surged 7% and 3.6%, respectively.
Mazda Motor climbed 1.2% as the yen weakened, boosting export shares.
The Nikkei 225 Index climbed 0.5% as of the midday break, set for its longest winning streak in about a month. So far, it is down 4.2% for the year.
The broader Topix gauge was flat.
US President Donald Trump’s on-again, off-again tariff spats have largely been factored into global equity prices, but Japanese stocks have yet to recover to highs seen around the beginning of the year, said Tatsunori Kawai, chief strategist at Mitsubishi UFJ eSmart Securities.
After meetings by the Bank of Japan and the Federal Reserve next week, summer salary bonuses and company dividends in Japan may be factors to push domestic shares higher.
“With those funds in the pipeline, I think the inflow of money into the market will continue,” Kawai said.
Japan’s Nikkei jumps as chip stocks rally ahead of Sino-US talks
“After we get through next week, I think it’s basically easier to go higher and catch up with US equities.”
Sumco was the biggest gainer on the Nikkei, followed by Isetan Mitsukoshi gaining 6.2%.
The biggest loser was Hino Motors down 17%, after the truckmaker and unit of Toyota Motor said it would issue new shares as part of a merger agreement with Mitsubishi Fuso.
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