Nikkei ends at 1-year high as fears of tariff impact on economy ease
The 225-issue Nikkei Stock Average gained up 655.02 points, or 1.59 percent, from Wednesday at 41,826.34. The broader Topix index finished 51.17 points, or 1.75 percent, higher at 2,977.55.
All industry sectors advanced on the top-tier Prime Market, with gainers led by bank, precision instrument and nonferrous metal issues.
The U.S. dollar briefly weakened to the upper 145 yen range in Tokyo, as expectations of an additional interest rate hike by the Bank of Japan grew and uncertainty over the Japanese economy receded following the trade deal.
Japan and the United States agreed on 15 percent tariffs on products from Japan after President Donald Trump said earlier in the month the United States would impose 25 percent tariffs on imports from Japan starting Aug. 1 under "reciprocal" tariffs.
Expectations for progress in tariff negotiations between the United States and other countries also grew after a report that the European Union is closing in on a trade deal with Washington, brokers said.
"After the Japan-U.S. trade deal was abruptly announced at a time when (market participants) widely thought that it would not be reached by (the deadline of) August, hopes prevailed in the market that other countries will also follow suit," said Yuta Okamoto, market analyst at Tokai Tokyo Intelligence Laboratory Co.
Bank shares also remained a market driver on hopes for improved profits amid a rise in Japanese long-term yields.
After the benchmark Nikki index briefly rose above the 42,000 line, some investors moved to lock in profits from recent market gains.
But, investors may chase the upside if they confirm solid earnings from major companies that are slated to release quarterly results soon, Okamoto added.
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