November 15, 2019 / 7:44 AM / 22 days ago

Tokyo shares bounce back on renewed U.S.-China trade deal hopes

TOKYO, Nov 15 (Reuters) - Japanese stocks rebounded on Friday as White House comments that Washington and Beijing were close to striking a trade deal sparked buying in cyclical and financials.

The benchmark Nikkei share average rose 0.7% to 23,303.32, though it was 0.4% down for the week.

White House economic adviser Larry Kudlow said on Thursday an agreement with China could be reached soon, providing a fillip to investor confidence.

The broader Topix gained 0.7% to 1,696.67, with all but two of its 33 subsectors finishing in positive territory.

High-beta shares, or those that are sensitive to economic cycles were among the biggest gainers, with shippers advancing 1.6% and brokerages climbing 1.4%.

Interest rate-sensitive REITs performed well on falling global bond yields, with TSE REIT index up 1.2%.

Other notable gainers included companies whose earnings results surprised positively.

Japan Post Insurance, hit by a scandal involving improper sales practices, jumped 5.9% after it forecast a 11.7% year-on-year increase in net profit for the current financial year through March.

Another scandal-ridden financial institution, Suruga Bank , soared 7.4% on its April-September earnings results.

Kadokawa surged 6.1% to 2 1/2-year highs after the publishing and web services company raised its profit outlook.

Asahi Intecc rose 4.4% after the medical equipment maker’s quarterly profits beat market expectations.

Among losers, messaging app firm Line shed 4.7% and the operator of Yahoo Japan Z Holdings dived 7.1% after massive gains the previous day on news that the two technology firms are in merger talks.

“Now that mid-year earnings season is almost over and given a lack of fresh trading cues, it’s a little bit of a Goldilocks situation today,” a trader at an equity investment firm said. (Reporting by Tomo Uetake & Hideyuki Sano; Editing by Uttaresh.V and Shailesh Kuber)

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