Nikkei briefly rises over 2% on hopes US-China trade tensions ease
TOKYO (Kyodo) -- Tokyo stocks ended sharply higher Wednesday, with the Nikkei index briefly rising more than 2 percent, as buying was spurred by hopes for an easing of U.S.-China trade tensions.
The 225-issue Nikkei Stock Average ended up 648.03 points, or 1.89 percent, from Tuesday at 34,868.63. The broader Topix index finished 52.20 points, or 2.06 percent, higher at 2,584.32.
On the top-tier Prime Market, gainers were led by transportation equipment, rubber product, and insurance issues.
The U.S. dollar briefly rose to the lower 143 yen level after falling below 140 yen the previous day for the first time since last September, as concern over the independence of the U.S. central bank subsided after President Donald Trump said he has no plans to replace Federal Reserve Chair Jerome Powell.
But it later fell to the upper 141 yen range in Tokyo, as the yen was sought on speculation that the U.S. administration will urge Japan to address the yen's weakness against the dollar when U.S. Treasury Secretary Scott Bessent and Japanese Finance Minister Katsunobu Kato meet in Washington this week, dealers said.
Shares were bought almost across the board following overnight gains on Wall Street after Bessent reportedly said Washington and Beijing need to find a path to de-escalation in their tariff standoff.
The benchmark Nikkei index briefly soared above 35,000 for the first time in about three weeks, as export-linked auto and machinery issues advanced on a weaker yen, which would boost exporters' overseas profits when repatriated, brokers said.
"Excessive caution (over the adverse impact of U.S. tariffs) is easing, and sentiment is also supported by expectations for progress in the ongoing tariff negotiations" with the United States, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co.
Among other notable gainers, investors bought heavyweight chip issues. Bank issues also drew buying on hopes for improved profits on the back of rising Japanese long-term interest rates.
However, the rise was limited as some investors remained on the sidelines before the start of the earnings season and the scheduled talks on currency between the Japanese and U.S. finance chiefs in Washington, the dealers said.
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