BCN-28 Tokyo stocks close higher on US rate-cut hopes

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BCN-28

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Tokyo stocks close higher on US rate-cut hopes

TOKYO, June 20, 2019 (BSS/AFP) – Tokyo stocks closed higher Thursday after
modest gains on Wall Street as the US central bank signalled it could soon
cut interest rates.

The benchmark Nikkei 225 index gained 0.60 percent, or 128.99 points, to
21,462.86, while the broader Topix index ended up 0.30 percent, or 4.63
points, at 1,559.90.

Hopes for cheaper money lifted stocks as the Federal Reserve vowed to act
to keep the US economy growing as uncertainties mount over trade and other
geopolitical and economic issues.

Fed chief Jerome Powell said trade frictions and slowing growth worldwide
have led many central bankers to feel the case for an interest rate cut has
“strengthened” but most still want to see more data before making a move.

“A new round of Fed easing is largely contingent on the outcomes from the
upcoming G20 meeting between President Trump and Xi,” National Australia Bank
said in a commentary.

US President Donald Trump expects to meet his Chinese counterpart Xi
Jinping at the G20 summit in Japan next week.

“For now though, the change in the Fed’s bias has encouraged the market to
increase its expectations that a new round of easing is just around the
corner,” it said.

The yen rose against the dollar in a negative development for Japanese
exporters but mounting hopes for the US-China meeting helped lift the Nikkei,
Okasan Online Securities chief strategist Yoshihiro Ito said in note.

In individual stocks trade, technology investor SoftBank Group rose 2.58
percent to 10,515 yen and Uniqlo clothing chain operator Fast Retailing
climbed 0.98 percent to 67,500 yen.

Some leading automakers fell on the stronger yen, with Toyota ending down
0.47 percent at 6,740 yen and Honda losing 1.87 percent to 2,771 yen.

The dollar stood at 107.56 yen, down from 108.08 yen in New York and the
mid-108 yen range seen in Tokyo on Wednesday afternoon.

Wrapping up a two-day policy meeting on Thursday, the Bank of Japan
maintained its super-loose monetary policy while noting that “downside risks
concerning overseas economies are likely to be significant”.

BSS/AFP/HR/1252