Nikkei ends near 6-week highs on hopes for trade talks, Fed rate cut

  • Reuters
  • Stock Market News
Nikkei ends near 6-week highs on hopes for trade talks, Fed rate cut
Credit: © Reuters.

* Nomura Holdings jumps on share buyback announcement

* Japan Display soars on report Apple may help

By Ayai Tomisawa

TOKYO, June 19 (Reuters) - Japan's Nikkei rallied hard to end near six-week highs on Wednesday on news that the United States and China will revive talks on trade, while expectations the U.S. Federal Reserve will cut rates this year supported sentiment.

The Nikkei share average .N225 jumped 1.7% to close at 21,333.87, the highest closing level since May 10.

U.S. President Donald Trump said he would meet with Chinese President Xi Jinping at the G20 summit later this month, and said talks between the two countries would restart after a recent lull. are taking heart from the new development. The two countries will at least be talking (after a lull), so the market thinks there is little chance that talks get broken off soon after they meet," Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Institute.

Hirakawa also said support for risk appetite came from hopes and expectations of monetary easing in both the United States and Europe.

The Fed concludes its two-day policy meeting later Wednesday, with analysts expecting rates to be left unchanged but also setting the stage for possible easing later this year.

On Tuesday, European Central Bank President Mario Draghi hinted at more stimulus if regional inflation fails to pick up toward its target, sending global yields lower.

The broader Topix .TOPX gained 1.7% to 1,555.27, with all of its subsectors in positive territory.

Companies with large exposure in China such as tech shares and electric component makers outperformed, with Advantest Corp 6857.T surging 5.4%, Taiyo Yuden 6976.T up 5.6% and TDK Corp 6762.T up 4.6%.

Machinery shares joined the rally, with Fanuc Corp 6954.T rising 2.3%, Yaskawa Electric Corp 6506.T adding 2.8% and Keyence Corp 6861.T jumping 4%.

Nomura Holdings 8604.T soared 10.5% after it said it would buy back up to 8.6% or its shares outstanding, or up to 150 billion yen.

Elsewhere, Japan Display Inc 6740.T rocketed 10.9% after the Wall Street Journal reported that Apple Inc AAPL.O may consider helping the company. Reuters has not verified the report. (Editing by Simon Cameron-Moore & Shri Navaratnam)

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or