Tokyo stocks close higher on cheaper yen

Pedestrians walk in front of an electronics stock indicator at the window of a security company in Tokyo, displaying the closing rate of the Tokyo Stock Exchange, on June 4, 2018. The benchmark Nikkei 225 index closed up 1.37 percent or 304.59 points at 22,475.94 supported by brisk US jobs growth and manufacturing data that boosted Wall Street. / AFP PHOTO / Toshifumi KITAMURA

Tokyo stocks rose Wednesday as a weaker yen boosted exporters, while investors keep an eye on brewing trade tensions and geopolitical issues.

The benchmark Nikkei 225 index added 0.38 percent, or 86.19 points, to close at 22,625.73, while the broader Topix index edged up 0.15 percent, or 2.63 points, to 1,777.59.

“The relatively cheaper yen and rather strong US stocks futures are seen supporting the market,” SBI Securities said in a commentary.

The dollar traded at 109.89 yen in Asia, up slightly from 109.76 yen in New York late Tuesday.

The equity rally was in line with a broad advance across Asia as reports said China and the United States were offering fresh concession in trade talks.

Bloomberg News reported that China had offered to ramp up purchases of various US goods during talks this week, while Washington would ease US buying restrictions on Chinese telecom-equipment giant ZTE.

However, Mexico imposed retaliatory tariffs on a raft of US products after Washington last week hit the country — along with Canada and the EU — with steel and aluminium tariffs.

Eyes are now on the Quebec gathering of G7 leaders, with Donald Trump expected to face heavy criticism from his colleagues.

Dealers are also cautious as the new Eurosceptic government in Rome could be on a possible collision course with Brussels over debt rules and eurozone reform.

In share trading, Kobe Steel rebounded 0.63 percent to 1,116 yen after tumbling more than one percent the previous day on a prosecutors’ raid of its headquarters over a quality data fabrication scandal.

Sony rose 2.78 percent to 5,539 yen while Toyota advanced 1.75 percent to close at 7,474 yen.

But Subaru fell 1.39 percent to 3,389 yen after its president late Tuesday announced his resignation over a mileage-data cheating scandal.

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