Tokyo stocks close higher on hopes for trade deal, weaker yen

Source: Xinhua| 2019-11-08 18:23:02|Editor: Shi Yinglun
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TOKYO, Nov. 8 (Xinhua) -- Tokyo stocks closed higher Friday on hopes a key trade deal between two major economies will come to fruition, with the yen's softer tone against the U.S. dollar helping underpin the market and giving exporters a boost.

The 225-issue Nikkei Stock Average added 61.55 points, or 0.26 percent, from Thursday to close the day at 23,391.87.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, gained 4.64 points, or 0.27 percent, to finish at 1,702.77.

Trading got off to a bright start, local brokers said, as investor sentiment was bolstered by hopes two major economies were close to striking an interim trade deal.

Throughout the day, trade was choppy however, as investors digested mixed reports on the issue with some opting to secure profits already made, rather than chase the market higher.

Market strategists said that until further trade-related cues become available, the market will likely remain top-heavy.

"If more details come out, the Nikkei is expected to rise to a level between 23,700 and 23,800 and until then the market will remain top-heavy," Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management Co., was quoted as saying.

The yen's softer tone against the U.S. dollar, however, helped underpin the market and saw exporters rise, as they typically count on a weaker yen to boost profits made overseas when repatriated.

Mitsubishi Motors accelerated 2.0 percent, while Toyota Motor added 2.2 percent. Honda Motor, meanwhile, closed the day 1.9 percent higher.

By the close of play, precision instrument, iron and steel, and transportation equipment-linked issues comprised those that gained the most, and issues that rose outpaced those that fell by 1,028 to 1,022 on the First Section, while 103 ended the day unchanged.

On the main section on Friday, 1,626.80 million shares changed hands, rising from Thursday's volume of 1,267.75 million shares.

The turnover on the final trading day of the week came to 3,125.5 billion yen (28.59 billion U.S. dollars).