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Tokyo: Stocks close higher on hope for US-China trade row

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[TOKYO] Tokyo stocks rose on Tuesday on growing expectations the US and China can strike a deal ending their trade dispute as the two countries prepared to continue negotiations.

The benchmark Nikkei 225 index gained 0.10 per cent, or 20.80 points, to close at 21,302.65, while the broader Topix index was up 0.28 per cent, or 4.56 points, at 1,606.52.

"There is a high expectation of progress on a US-China trade deal as they will continue negotiations," Daiwa Securities senior technical analyst Hikaru Sato told AFP.

Top-level officials from the world's two biggest economies will reconvene in Washington after a series of negotiations in Beijing last week, with the US side telling Donald Trump they had been "very productive".

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Bargain-hunting also helped support the Tokyo market, Mr Sato added.

Trade was in a narrow range with investors watching the dollar-yen exchange rate and the Chinese market.

New York markets were on Monday shut for Presidents' Day, and thin European trading volumes reflected the absence of US investors on the holiday.

The dollar fetched 110.61 yen in Asian afternoon trade, against 110.59 yen in London time.

In Tokyo, Honda rose 0.36 per cent to 3,014 yen following news reports that it would announce the shutdown of its plant in southwest England.

Sony jumped 1.35 per cent to 5,149 yen but Nintendo fell 1.01 per cent to 29,375 yen.

China-linked shares were also lower after rallies in the previous session, with construction machine maker Komatsu down 0.95 per cent at 2,738 yen and electronic parts maker Rohm down 2.18 per cent at 7,600 yen.

AFP