INSUBCONTINENT EXCLUSIVE:
TOKYO: Japan's Nikkei index rose on Thursday as emboldened investors bought global cyclical stocks after the Federal Reserve hinted it was
near the end of its rate hike cycle.
But gains were trimmed by lingering concerns over the outcome of a meeting between US President Donald
Trump and Chinese President Xi Jinping on the sidelines of the G20 summit in Argentina this weekend, in which their trade tug-of-war is seen
sure to feature.
The Nikkei share average gained 0.4 per cent to 23,262.60.
On Wednesday, US Federal Reserve Chair Jerome Powell said the
central bank's policy rate is now "just below" estimates of the neutral level that neither brakes nor boosts a healthy economy, comments
many took as signalling the Fed's three-year tightening cycle is drawing to a close.
Powell's comments boosted US stock markets and
pulled the dollar down from two-week highs.
"One of the three main concerns in the market is easing so that's helping stocks," said
Nobuhiko Kuramochi, a strategist at Mizuho Securities, referring to the pace of the Fed's rate hikes, US-China trade tension, and a fall
in oil prices.
Kuramochi said while a stronger yen is negative for Japanese exporters, the current dollar-yen level is still higher than
where Japanese companies forecast the currencies would trade this fiscal year.
The dollar fell 0.4 per cent versus the yen to trade at
113.31 Thursday.
Exporters attracted buyers, with Advantest Corp rising 2 per cent, Sumco Corp gaining 2.1 per cent and Nintendo Co surging
4.1 per cent.
Kyocera Corp rose 3.2 per cent after the manufacturer said it reached a settlement with Hemlock Semiconductor over long-term
purchase agreements for the supply of polysilicon materials for harvesting solar energy.
But Mitsubishi Heavy Industries Ltd fell 1.3 per
cent after South Korea's top court ruled on Thursday that the Japanese heavy machinery maker must compensate 11 South Koreans for their
forced labour during World War Two.
The broader Topix advanced 0.4 per cent to 1,659.47
