Tokyo stocks close higher as hopes for trade talks lifts sentiment

Source: Xinhua| 2019-11-06 18:46:20|Editor: Shi Yinglun
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TOKYO, Nov. 6 (Xinhua) -- Tokyo stocks closed higher Wednesday with the benchmark Nikkei stock index ending at a fresh 13-month high, as investors remained optimistic about key international trade talks.

The 225-issue Nikkei Stock Average added 51.83 points, or 0.22 percent, from Tuesday to close the day at 23,303.82, marking its highest closing level since Oct. 10 last year.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 0.29 point, or 0.02 percent, to finish at 1,694.45.

Local brokers said the market inherited a positive lead from anther record closing high overnight for the Dow Jones Industrial Average, with sentiment also lifted by solid U.S. service sector data for October.

In addition to continued optimism about key ongoing international trade talks and the future course of the global economy, the yen's retreat against the U.S. dollar also added to a risk-on mood, market strategists said.

"A risk-on mood continued given a climb in U.S. stocks, bond yields and the dollar against the yen," Chihiro Ota, general manager of investment research at SMBC Nikko Securities Inc., was quoted as saying.

Gains were capped in later trade, however, market analysts said, as some investors opted to secure gains made recently and lock in profits, while others sold on concerns the market may be showing signs of overheating.

"Technical charts showed some signs of the market overheating in the short term, triggering a degree of selling," Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co., said.

By the close of play, pulp and paper, iron and steel and marine transportation-linked issues comprised those that gained the most, and issues that fell outpaced those that rose by 1,039 to 1,009 on the First Section, while 106 ended the day unchanged.

On the main section,1,388.52 million shares changed hands dropping from Tuesday's volume of 1,660.76 million shares.

The turnover on Wednesday came to 2,482.3 billion yen (22.78 billion U.S. dollars).