Japan stocks head for longest rally since 2009
The benchmark gauge rose as much as 1.9% to 2,794.96 in Tokyo, heading for a 13th straight day of gains. — Bloomberg
TOKYO: Japanese stocks extend their climb, putting the Topix on track for its longest winning streak in 16 years, after the United States and China agreed to de-escalate tariffs, boosting risk-on sentiment and sending the yen lower.
The benchmark gauge rose as much as 1.9% to 2,794.96 in Tokyo, heading for a 13th straight day of gains, the most since August 2009.
The blue-chip Nikkei 225 Stock Average was up as much as 2.3% to 3,8494.06.
The climb comes after the United States slashed duties on Chinese products to 30% from 145% for a 90-day period, while Beijing dropped its levy on most goods to 10%, following two days of high-stakes talks in Switzerland.
The announcement came after Japan's stock market closed on Monday.
'The risk-off sentiment that had built up is easing, and it looks like the buying trend will continue for a while longer,' said Naoki Fujiwara, a senior fund manager at Shinkin Asset Management.
Exporters like Toyota Motor Corp and Nintendo Co contributed most to the Topix's rise, with banks also strong. Firms that make a large chunk of revenue in China, like Yaskawa Electric Corp and Fanuc Corp, were among the Nikkei's top performers.
Investors are still waiting for a trade agreement between Japan and the United States. Prime Minister Shigeru Ishiba intends to reach an agreement with the United States in July, according to Asahi.
The US-China agreement makes it 'more likely there is a deal between Japan and the United States,' said Kelvin Leung, a portfolio manager at Robeco Hong Kong.
'However, I'm more worried about the fast optimism in Japan,' he said. 'Judging by the index level, expectations are running ahead.'
The Nikkei 225 has climbed more than 5% through Monday since US President Donald Trump announced so-called reciprocal tariffs on April 2. — Bloomberg
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
29 minutes ago
- The Star
Asian shares post modest gain, dollar holds drop
NEW YORK: Asian shares edged up at the open as investors awaited news on trade negotiations between the US and China before taking on risky bets. A regional stock index climbed 0.4 per cent while equity-index futures for the US dipped 0.2 per cent. Shares in mainland China fluctuated at the open on their return from a holiday Monday (June 2). Hong Kong shares advanced, erasing yesterday's losses. Treasuries were steady in Asian trading on Tuesday and the dollar was little changed after hitting its lowest since 2023 in the last session. Oil extended its gains. Investors are keeping a close eye on the latest twists in the trade war after a slew of headlines Monday. The main focus is whether US President Donald Trump and China's Xi Jinping will hold a conversation to dial down the tensions, after the two countries accused each other of violating a trade agreement reached in May. China hasn't confirmed any decision for talks between the two presidents even as the US pushes for a dialogue. "We're clearly seeing a lot of volatility and investors want more visibility,' Massimiliano Bondurri, founder and chief executive officer of SGMC Capital in Singapore, said on Bloomberg TV. "It's normal that markets are actually going to be flip-flopping. You're going to see actually even intraday swings. Could this be something that stays with us? Yes, it could.' Trump has long said that direct talks with Xi were the only way to resolve differences between the nations, but the Chinese leader has been reluctant to get on the phone with his American counterpart - preferring that advisers negotiate key issues. The last known conversation between Trump and Xi took place in January before the US president's inauguration. Top Trump economic adviser Kevin Hassett signaled Sunday the White House was anticipating a call this week with the Chinese leader. Meanwhile, Japan's top trade negotiator Ryosei Akazawa is considering returning to the US for another round of trade negotiations this week as expectations mount for a deal as early as this month. "We continue to expect market volatility as investors digest fresh tariff headlines and incoming US economic data,' said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management. "Fiscal worries remain, and geopolitical tensions are heating up.' Trump worked the phones Monday and took to social media to try to sway Republican holdouts on his multi-trillion dollar tax bill, encountering conflicting demands from GOP senators even as he urged them to move swiftly. The legislation, which last month passed the House by one vote, faces opposition from both moderates and ultra-conservatives in the Senate, where Trump can afford to lose no more than three votes. In Japan, attention will once again shift to a debt market sale Tuesday that may ramp up pressure on the government to adjust its borrowing plans and calm investor nerves. Hot on the heels of auctions last month that exposed a lack of demand, the finance ministry will sell ¥2.6 trillion (US$18 billion) of ten-year notes. In geopolitics, Russia and Ukraine wrapped up a second round of talks in Istanbul that failed to bring the two sides closer to ending the war, but laid the groundwork for a new exchange of prisoners. - Bloomberg
New Straits Times
38 minutes ago
- New Straits Times
Malaysia secures RM4.7bil in investment leads from Japan at Osaka Expo
KUALA LUMPUR: Malaysia has secured RM4.68 billion in potential investment leads from Japan through a recent mission tied to Expo 2025 Osaka, according to the Malaysian Investment Development Authority (Mida). The leads, secured through engagements in Kyoto, Kobe, Osaka and Tokyo, make up nearly 57 per cent of the RM7.39 billion in total potential investments linked to Malaysia's presence at the expo so far. "This achievement reflects the strength of Malaysia's investment proposition and the strategic trust placed in us by Japanese partners," Mida chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said in a statement. He said Mida would continue to facilitate high-quality investments aligned with national priorities in clean energy, innovation and sustainability. The investment promotion effort included one-on-one meetings with Japanese companies and a seminar in Osaka highlighting opportunities in green and high-value sectors. Investment, Trade and Industry Deputy Minister Liew Chin Tong, who officiated the Malaysia Pavilion, said the Expo is a platform to demonstrate the country's positioning as a "future-ready, innovation-driven and sustainability-conscious partner." A key outcome so far is the signing of a memorandum of understanding between Sarawak Energy Bhd and the Japan Bank for International Cooperation to advance clean energy collaboration. The Malaysia pavilion, expected to host over 150 business engagements during the six-month expo, is part of the government's broader strategy to generate RM13 billion in investment and trade outcomes.
The Star
an hour ago
- The Star
Shares dither, dollar falls as trade angst persists
SINGAPORE: Asia shares edged cautiously higher on Tuesday while the dollar fell to a six-week low as erratic U.S. trade policies clouded over markets and investors turned defensive ahead of key developments later in the week. U.S. President Donald Trump and Chinese leader Xi Jinping will likely speak this week, White House press secretary Karoline Leavitt said on Monday, days after Trump accused China of violating an agreement to roll back tariffs and trade restrictions. The call between the two leaders will be closely watched by markets to see if the tariff-induced blow to global stocks and the dollar this year could get some reprieve or ratchet up, as trade tensions between the world's two largest economies simmer. Data on Monday showed U.S. manufacturing contracted for a third straight month in May and suppliers took the longest time in nearly three years to deliver inputs amid tariffs. "The May ISM showed tariff pressure is beginning to bite for manufacturers who are seeing slowing activity, longer lead times and declining inventories," said economists at Wells Fargo. China's factory activity in May also shrank for the first time in eight months, a private-sector survey showed on Tuesday, indicating U.S. tariffs are starting to hurt manufacturers. The gloomy global trade situation left U.S. futures falling early in the Asian session, failing to sustain the slight gains made during the cash session on Wall Street overnight. Nasdaq futures and S&P 500 futures were both down 0.2% each. In Europe, EUROSTOXX 50 futures advanced 0.28% and FTSE futures added 0.15%. MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to last trade 0.6% higher, while Japan's Nikkei rose 0.66%. "Trump really does have sentiment in the palm of his hands once again," said Matt Simpson, senior market analyst at City Index. "I suspect we'll hear about 'a really great call' or words to the effect," he said, referring to the expected call between Trump and Xi. "But we'll need to wait for confirmation from China, who tends to take their time on these matters. Until we get concrete confirmation, price action could be shaky and vulnerable to false also have the June 4 deadline for 'best trade deals' from U.S. trading partners to factor in." In China, mainland markets returned from an extended break on a muted note, with the CSI300 blue-chip index up 0.23% while the Shanghai Composite Index gained 0.3%. Hong Kong's Hang Seng Index jumped more than 1%, rebounding from Monday's one-month low. PAYROLLS ON DECK The dollar fell to a six-week low against a basket of currencies to 98.58 on Tuesday, ahead of Friday's U.S. nonfarm payrolls data, which will offer a timely reading on the pulse of activity in the world's largest economy. A rise in unemployment is one of the few developments that could get the Federal Reserve to start thinking of easing policy again, with investors having largely given up on a cut this month or next. The euro scaled a six-week top earlier in the session before paring some of its gains to last trade at $1.1426, while sterling dipped 0.09% to $1.3532. A softer U.S. jobs report would be a relief for the Treasury market, where 30-year yields continue to flirt with the 5% barrier as investors demand a higher premium to offset the ever-expanding supply of debt. The Senate this week will start considering a tax-and-spending bill that will add an estimated $3.8 trillion to the federal government's $36.2 trillion in debt. "The evidence suggests term premium being re-priced considerably higher to account for U.S. fiscal, trade, credit, and geoeconomic risks alongside some hedge against (U.S. dollar) debasement," said Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho. The dollar was up 0.35% against the yen at 143.20, reversing some of its 0.9% decline from the previous session. Bank of Japan Governor Kazuo Ueda said on Tuesday it is important to make policy judgements without any preset ideas as uncertainty over global tariff policies remains extremely high. In commodities, oil prices rose on concerns about supply, with Brent crude futures climbing 0.88% to $65.20 a barrel, while U.S. crude surged 1% to $63.13 per barrel. Spot gold rose to a roughly one-month high of $3,392.03 an ounce.- Reuters
