Tokyo: Stocks close up on stimulus package, US rallies

[TOKYO] Tokyo stocks closed higher on Thursday as investors welcomed fresh stimulus measures for Japan and rallies on Wall Street after upbeat reports about US-China trade talks.

The benchmark Nikkei index climbed 0.71 per cent, or 164.86 points, to 23,300.09 while the broader Topix index was up 0.48 per cent, or 8.14 points, at 1,711.41.

Investors welcomed a stimulus package worth US$120 billion announced by Prime Minister Shinzo Abe on Thursday.

"It's certainly positive news," said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

"In particular, stimulus-related shares such as construction companies benefited from the announcement," Mr Horiuchi told AFP.

Japanese shares were also encouraged by rallies in US stocks on renewed hopes for the China-US trade talks, dealers said.

Bloomberg News reported that US negotiators expected a deal to be finalised before US tariffs against China are due to rise on Dec 15.

The US dollar fetched 108.78 yen in Asian afternoon trade, against 108.88 yen in New York.

In Tokyo, construction firms jumped on the announcement of the package. Obayashi surged 2.44 per cent to 1,217 yen with Shimizu up 3.38 per cent at 1,099 yen.

Oil-linked shares and commodities were also higher reflecting a rebound in global stocks, with Japan Petroleum Exploration jumping 4.25 per cent to 2,967 yen, crude oil developer and distributor Inpex climbing 1.51 per cent to 1,073 yen.

Sony lost 0.14 per cent to 7,088 yen on profit-taking following recent gains.

AFP