BCN-05 Tokyo stocks open higher as trade fears ease

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BCN-05

STOCKS-JAPAN-OPEN

Tokyo stocks open higher as trade fears ease

TOKYO, Feb 13, 2019 (BSS/AFP) – Tokyo stocks opened higher on Wednesday,
tracking gains on Wall Street as fears about a US-China trade war and another
US government shutdown eased.

The benchmark Nikkei 225 index rose 0.80 percent, or 166.99 points, to
21,031.20 in early trade, while the broader Topix index was up 0.62 percent,
or 9.80 points, at 1,582.40.

“Investor sentiment is improving sharply” on optimism over US-China trade
talks and signs of a deal to avoid another US government shutdown, SBI
Securities senior market analyst Kyoko Amemiya told AFP.

US President Donald Trump told reporters he would consider extending the
deadline for a trade deal with China beyond March 1.

“If we’re close to a deal, where we think we can make a real deal… I
could see myself letting that slide for a little while,” Trump said.

The comments came as the third round of trade negotiations were set to
resume in Beijing to avert more than doubling tariffs on $200 billion in
Chinese imports.
The US president, while not ruling anything out, suggested his latest
funding fight with congressional Democrats over border security would not
result in another shutdown.

“In addition, a sound Shanghai market in China after the lunar new year
holidays and a brisk Shenzhen market — where China’s small and mid-sized
shares are traded — is also providing a sense of relief to investors,”
Amemiya said.

Investors received a sign from the Chinese markets that China’s economy
will be resilient, she said.

The dollar fetched 110.49 yen in early Asian trade, against 110.48 yen in
New York late Tuesday.

In Tokyo, Sony was up 0.80 percent at 4,893 yen, Toyota added 0.40 percent
to 6,632 yen and Honda climbed 0.72 percent to 2971.5 yen.

Nissan was down 0.22 percent at 929.3 yen after the automaker said it had
slashed its full-year forecast.

On Wall Street, the Dow Jones Industrial Average snapped a four-day losing
streak, soaring 1.5 percent to end at 25,425.76.

BSS/AFP/HR/0930