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Tokyo stocks close higher as trade worries ease
TOKYO, Aug 28, 2018 (BSS/AFP) – Tokyo stocks closed marginally higher on
Tuesday as trade worries receded after the United States and Mexico announced
a breakthrough deal to rewrite a North American trade pact.
The benchmark Nikkei 225 index was up 0.06 percent or 13.83 points to end
at 22,813.47 while the broader Topix index edged up 0.16 percent or 2.68
points to 1,731.63.
US President Donald Trump and outgoing Mexican President Enrique Pena Nieto
hailed the new trade agreement, which raises hopes the North American Free
Trade Agreement can be salvaged after Canada rejoins the talks on Tuesday.
The proposed new NAFTA deal includes provisions on auto trade, tougher
worker protections and a provision to review the deal every six years.
“Following the overall agreement between the US and Mexico, speculation
that the US may reach a deal with China would be a tailwind for Japanese
shares,” Yoshihiro Ito, chief strategist at Okasan Online Securities, said in
a commentary.
In Tokyo, Toyota was up 0.86 percent at 7,026 yen after it confirmed that
it will invest about $500 million into Uber as part of a deal to work
together on mass-producing self-driving vehicles.
Denso jumped 2.27 percent to 5,388 yen and Aisin Seiki was up 1.17 percent
at 5,150 yen, after the two auto parts companies of Toyota group said they
will set up a joint venture with two other smaller firms aimed at developing
software for auto driving.
Other automakers were also higher, with Honda gaining 1.25 percent to 3,377
yen and Nissan advancing 1.29 percent to 1,052.5 yen.
Sony was flat, up 0.04 percent, at 6,173 yen and Panasonic climbed 0.70
percent to 1,356.5 yen.
The dollar fetched 111.21 yen in Asian trade, up from 111.07 yen in New
York.
BSS/AFP/MR/ 1420 hrs