TOKYO: Japan’s Nikkei share average ended higher on Monday as indications of progress in US-China trade talks boosted hopes of a deal between the major economies.
The Nikkei closed 0.38% higher at 37,644.26, after trading in the negative territory during the session.
The broader Topix rose 0.31% to finish at 2,742.08, marking a 12-day winning streak, its longest since October 2017.
The Sino-US trade talks ended on a positive note on Sunday, with US officials touting a “deal” to reduce the US trade deficit, while Chinese officials said an “important consensus” was reached and agreed to launch another new economic dialogue forum.
“Investors bought stocks on optimism that the trade talks between the US and China made progress,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory. “But gains were limited as they sold stocks on the rally. Both the Nikkei and Topix rose sharply, but those rallies were based just on expectations on the trade talk progress.”