Markets

Nikkei climbs to near 1-month high after Xi’s speech lifts mood, automakers

TOKYO: Japanese stocks rose to a near one-month high on Tuesday, led by automakers after Chinese President Xi Jinping promised to lower import tariffs on products including cars, indirectly addressing some of the US concerns that have sparked a trade row between the world's two biggest economies.

The comments come following a week of escalating tariff threats amid US frustration with China's trade and intellectual property policies, rattling financial markets worrying over potential damage to global growth.

The Nikkei rose 0.5 per cent to 21,794.32, the highest closing level since March 15, but off an intraday high of 21,933.99.

The market opened lower but rose after Xi's speech in which he also said China would raise the foreign ownership limit in the automobile sector "as soon as possible" and push previously announced measures to open the financial sector.

"He spoke in more details than the market had expected," said Nobuhiko Kuramochi, a strategist at Mizuho Securities. "The market was focused on mention about some sectors including auto and finance, and he seems to have delivered enough details to satisfy investors."

The transport equipment sector gained 1.4 per cent, with Toyota Motor Corp up 1.4 per cent, Honda Motor Co jumping 2.6 per cent and Mazda Motor Corp gaining 0.8 per cent.

The Nikkei rose 0.5 per cent to 21,794.32, the highest closing level since March 15

Industrial robot maker Fanuc Corp advanced 3.3 per cent, machine tool maker Okuma jumped 4.0 per cent and construction machinery maker Komatsu rose 2.9 per cent.

The broader Topix gained 0.4 per cent to 1,731.94.

Original Article

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