Tokyo stocks lifted by tech gains, US-China trade talks eyed

The Mainichi

6 hours ago

TOKYO (Kyodo) -- Tokyo stocks rose Monday as buying of tech shares helped the Nikkei index close above the key 38,000 line, but further gains were limited before U.S.-China trade talks.
The 225-issue Nikkei Stock Average ended up 346.96 points, or 0.92 percent, from Friday at 38,088.57. The broader Topix index finished 16.08 points, or 0.58 percent, higher at 2,785.41.
On the top-tier Prime Market, gainers were led by pharmaceutical, bank and electric appliance issues.
The U.S. dollar weakened to the lower 144 yen range in Tokyo on selling after the currency approached the 145 yen line as stronger-than-expected U.S. May employment data, released Friday, reduced concerns about a slowdown in the labor market.
The Nikkei benchmark ended above 38,000 for the first time since late May, as heavyweight semiconductor-related issues tracked gains by their U.S. counterparts. Bank shares were also higher on hopes for greater profits as Japanese bond yields climbed.
Meanwhile, investors awaited the outcome of high-level trade talks between the United States and China in London on Monday to see whether the world's two largest economies will make progress in easing tensions, brokers said.
"Japan doesn't seem to have made much progress (in tariff talks with the United States), so if investors can see other negotiations moving forward, it may give them some relief," said Toshikazu Horiuchi, equity strategist at IwaiCosmo Securities Co.
Pharmaceutical stocks led risers, with Otsuka Holdings jumping over 5 percent after the company said Friday that interim clinical trial data for its chronic kidney disease treatment showed encouraging results.