Stocks rose for the third straight session on the Tokyo Stock Exchange on Wednesday, as investors stayed hopeful for a U.S.-China deal to ease trade tensions between the world’s two economic superpowers.
The 225-issue Nikkei average went up 223.02 points, or 1.10 percent, to end at 20,427.06. On Tuesday, the key market gauge climbed 165.07 points.
The Topix index of all first-section issues was up 16.68 points, or 1.10 percent, at 1,535.11, after adding 5.90 points the previous day.
Stocks spurted at the outset following a powerful Wall Street rally prompted by the news that high-level U.S.-China trade talks in Beijing, initially scheduled to end on Tuesday, would continue for a third day, brokers said.
Market sentiment was also brightened by U.S. President Donald Trump’s tweet saying, “Talks with China are going well,” they noted.
The Nikkei average briefly gained 290 points in the afternoon, helped by strong performances of Shanghai and other Asian stocks. But the key yardstick lost steam toward the day’s closing, as investors retreated to the sidelines to see the outcome of the trade negotiations.
Masayuki Otani, chief market analyst at Securities Japan Inc., pointed out that the recent market rebound has been led by repurchases rather than fresh buying.
Noting that the Nikkei has gained nearly 900 points only for three sessions, a brokerage firm official said stocks are now prone to profit-taking at high levels.
Rising issues outnumbered falling ones 1,202 to 861 in the TSE’s first section, while 65 issues were unchanged.
Volume fell to 1.307 billion shares, from 1.552 billion shares on Tuesday.
China-related issues attracted purchases, with construction machinery-maker Komatsu jumping 3.17 percent and industrial robot producer Fanuc gaining 1.89 percent.
Automakers and pharmaceuticals, such as Toyota and Takeda, rose across the board.
Meanwhile, Taiyo Yuden lost 4.46 percent after Morgan Stanley MUFG Securities Co. revised down its investment rating for the electronic parts maker.
Clothing retailer Fast Retailing and mobile phone carrier KDDI sank on selective selling.
In index futures trading on the Osaka Exchange, the key March contract on the Nikkei average gained 200 points to end at 20,420.