TOKYO: Japan's Nikkei edged up to a three-week high on Friday supported by defensive stocks and petroluem shares, but gains were limited as investors braced for the weekend meeting between the leaders of the United States and China.Market participants remain sidelined ahead of the G20 summit in Buenos Aires, where President Donald Trump was due to meet his Chinese counterpart Xi Jinping to discuss trade and other thorny issues.The Nikkei share average rose 0.4 per cent to 22,351.06, the highest closing level since Nov.
8.The Nikkei rose 3.3 per cent over the week and 2 per cent for the month, recouping some of October's 9.1 per cent tumble."Investors are expecting a photo of Trump and Xi smiling and shaking hands after agreeing to continue dialogue," said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities."They may not reach a deal in one day, but as long as the market confirms the two countries will continue dialogue before the US's 25 per cent tariffs on Chinese goods starts on Jan.
1, there may not be big confusion in the market."Petroleum stocks found support on Friday from a rise in oil prices, which comes after heavy losses in crude since early October on supply concerns.
Inpex Corp surged 3.0 per cent and Japan Petroleum Exploration gained 2.3 per cent.Defensive drugmakers outperformed with Otsuka Holdings soaring 4.5 per cent and Eisai Co advancing 2.2 per centMurata Manufacturing rose 2.5 per cent after the ceramic capacitors maker announced its mid-term business plan.
It aims for a profit margin of 17 per cent and return on invested capital of more than 20 per cent in the year ending March 2022.The broader Topix added 0.5 per cent to 1,667.45.