Japan stocks head for longest rally since 2009
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
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