[TOKYO] Japan’s Nikkei share average closed at a more-than two-week high on Friday (Sep 5) as auto shares rose after US President Donald Trump signed an order to lower tariffs on Japanese automobile shipments and other products.
The Nikkei rose 1.03 per cent to close at 43,018.75, its highest close since August 19. The index rose to an intraday high of 43,220.94 soon after the opening.
The broader Topix rose 0.82 per cent to 3,105.31.
“Investors welcomed the news about Trump’s order to lower tariffs on Japan’s exports, but the gains at the open were too much,” said Shuji Hosoi, senior strategist at Daiwa Securities.
Toyota Motor and Honda Motor rose 1.98 per cent and 1.14 per cent, respectively.
Chip-related shares rose, with Advantest and Tokyo Electron gaining 2.14 per cent and 0.77 per cent, respectively.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Daiwa Securities’ Hosoi said the Nikkei could touch the 44,000 level next week, as sentiment was boosted by the lower tariffs on Japanese products.
The index is also seen rebounding as it fell below its 25-day moving average earlier this week, Hosoi said.
The Nikkei hit a record high in August and traded above the 25-day moving average, a key support level in technical analysis, for most of the month.
Of more than 1,600 stocks trading on the Tokyo Stock Exchange’s prime market, 67 per cent rose, 28 per cent fell, and 3 per cent traded flat. REUTERS
