Nikkei stretches winning streak to 7th session

Jiji Press TOKYO (Jiji Press) — Hopes for progress in U.S.-China trade negotiations continued to encourage investors to purchase Tokyo stocks Wednesday, allowing the benchmark Nikkei average to rise for the seventh straight market day.

The 225-issue Nikkei average soared 205.66 points, or 0.96 percent, to end at 21,597.76, after advancing 73.68 points on Tuesday. The seven-session winning streak was last achieved in late November to early December last year.

The TOPIX index of all issues listed on the Tokyo Stock Exchange’s first section finished up 25.67 points, or 1.65 percent, at 1,583.66. It gained 6.88 points the previous day.

The Tokyo market got off to a firmer start amid renewed expectations for a deal to be struck at the upcoming high-level U.S.-China trade talks.

Investors were particularly heartened by a South China Morning Post report saying, “China has offered to buy American products in exchange for a delay in a series of U.S. tariffs and easing of a supply ban against Chinese telecommunications giant Huawei Technologies.”

Both the Nikkei and TOPIX indexes went up further in the afternoon, propelled by the yen’s weakening against the dollar.

“In view of the Nikkei rising comfortably above 21,500, call option sellers took to the buy side ahead of Friday’s special quotation fixing” to settle September index futures and options contracts, Hiroaki Kuramochi, chief market analyst at Capital Partners Securities Co., said.

“The market is rebounding after excessively pricing in an economic slowdown in the United States last month,” an official of a major securities firm said.

Rising issues outnumbered falling ones 1,845 to 264 on the first section, while 42 issues were unchanged. Volume rose to 1,685 million shares from Tuesday’s 1,417 million shares.


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