On Monday, the 4th of March, Japan’s Nikkei 225 rose more than 1 percent to a fresh three-month high, largely galvanized by the gains of Machinery stocks on trade deal hope, and firms exposed to China posted heavy gains over the possibility of the US and China signing a trade deal by the end of March to settle their eight-month-long bitter tariff dispute.
Followed by the reveal of a Washington Post report on Monday (March 4th), which stated the possibility of a decipherable trade deal ahead by the end of March, the Asian shares had opened the day higher and the Asian traders remained riant throughout the day, alongside European investors.
The Nikkei share average added 1.02 percent at the day’s market closure to 21,822.04, its highest level since the 5th of December, 2018. Against the run of a play of the broader market, the Suzuki Motor toppled 3.9 percent, after its Indian Unit, Maruti Suzuki’s February sales had reported a drop of 0.8 percent.
Despite Suzuki’s fumble, the broader Topix closed the day 0.7 percent higher. Nikkei’s 26 subsectors exposed heavily to Chinese trade were up, while machinery, alongside chip-related businesses hinged on Chinese exports, had led the rally.
Citing affirmative effects of trade talk progresses to Japanese Stocks, a senior fund manager at the Dalton Capital, Japan, Fumio Matsumoto said, “Any sign that indicates progress in trade talks would be positive to Japanese stocks as earnings were pressured by a slowdown in global demand”.