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Tokyo: Stocks close higher on trade optimism
[TOKYO] Tokyo stocks closed higher for a fourth straight session on Friday, extending rallies on Wall Street on hopes of a China-US trade deal.
The benchmark Nikkei 225 index rose 0.26 per cent or 61.55 points to end at 23,391.87. Over the week, it jumped 2.37 per cent.
The broader Topix index was up 0.27 per cent or 4.64 points at 1,702.77, a weekly gain of 2.18 per cent.
"The Nikkei index rose as hopes for the removal of tariffs between the US and China expanded," Okasan Online Securities said in a commentary.
China and the United States have agreed a plan to remove tariffs imposed on two-way goods in stages, the commerce ministry said Thursday after the close of the Japanese market, as negotiators try to hammer out a trade deal.
Global investors welcomed the Chinese statements, with the US Dow and S&P 500 finishing at fresh records.
In Tokyo trading, banks were among the winners with Mitsubishi UFJ Financial gaining 1.56 per cent to 590.5 yen and Sumitomo Mitsui Financial 1.38 per cent to 4,015 yen.
Automakers were also higher with Honda rising 1.92 per cent to 3,072 yen. Following the closing bell, the company said its net profit plunged 19.0 per cent due to negative currency exchange rate and declining sales.
Toyota jumped 2.18 per cent to 7,905 yen while Mitsubishi Motors climbed 2.03 per cent to 502 yen.