TOKYO, Sept 6 (Reuters) - Japanese shares reached another one-month on Friday as better-than-expected U.S. economic data and hopes for progress from coming trade talks between the United States and China bolstered risk appetites.
The benchmark Nikkei average .N225 gained as much as 0.7% to 21,241.29 in mid-morning trade, its highest level since Aug. 1, while the broader Topix .TOPX rose as much as 0.5% to 1,542.38, its highest in a month.
Global equity markets welcomed upbeat data from the United States and news that Washington and Beijing agreed to high-level talks early in October, raising hopes for a de-escalation of the damaging conflict. Thursday, ADP (NASDAQ: ADP ) data showed U.S. private payrolls increased in August at their fastest pace in four months. Separately, U.S. the services industry rebounded last month to its fastest expansion since February, according to the ISM's non-manufacturing PMI. dollar climbed to a one-month high of 107.235 yen overnight JPY= , providing a tailwind for shares of Japanese exporters as a weak yen enhances corporate profits when they are repatriated.
Machinery .IMCHN.T and automakers .ITEQP.T , major beneficiaries of a weakening yen, were the two top performing sectors of the Tokyo's 33 subindexes, up 1.5% and 1.3%, respectively. Nissan Motor Co 7201.T climbed 2.5% and Honda Motor Co 7267.T advanced 2.8%.
Bank shares gained broadly after U.S. Treasury yields ticked higher overnight. Mitsubishi UFJ Financial Group 8306.T and Sumitomo Mitsui Financial Group 8316.T rose up 1.7% and 1.4%, respectively, while the banking sector subindex .IBNKS.T added 1.2%. the trend, Nikkei heavyweight SoftBank Group Corp 9984.T shed 3.8% on media reports that WeWork, owner of office space sharing startup The We Company, might slash the valuation it will seek in a planned initial public offering. WeWork is backed by SoftBank Group, which has invested or committed to invest $10.65 billion since 2017. Inc 4755.T dived 6.1% after media reports that the internet firm is pushing back the commercial launch of its wireless carrier service by six months because of delays in building the network. Saison Co 8253.T jumped 3.0% after it and Daiwa Securities 8601.T announced a capital alliance, with Daiwa acquiring 5% of Credit Saison's shares. Daiwa rose 1.7%.
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