On Wednesday, the 11th of September 2019, Japanese stocks spiked to a six-week peak, as major export-oriented shares banked gained amid a tumbling Japanese Yen followed by recent improvement of risk-sentiment on US-China trade optimism alongside hopes of broad-based stimulus from major economies likes of China and Germany.
Aside from that, rising bond yields alongside gains of financials including major Japanese lenders had contributed to Wednesday’s (September 11th) rally. Meanwhile, a stack of Japanese suppliers of iPhone maker, Apple Inc., had also bagged gains following announcement of a new line of iPhones with triple camera and a $5 per month Apple TV subscription.
In the face of a number of upbeat news despite growing political and financial upheaval with its noisy neighbour, South Korea, the benchmark Nikkei 225 index had managed to wrap up Wednesday’s (September 11th) market with a gain of 0.96 per cent to 21,597.76 after rising to a session high of 21,619.21 during early trading hours, Nikkei’s highest level since July 30th.
Meanwhile, addressing to an improved risk-sentiment following reveal of a fresh round of Sino-US trade talk as early as next month alongside a global sell-off of bonds, a senior strategist at Daiwa Securities, Hideyuki Ishiguro said on Wednesday’s (September 11th) Japanese market wind down, “There are signs of progress in U.S.-China trade talks, and Treasury yields have started rising, which is totally different from August.
The rising Treasury yields are triggering a decline in the yen, which is causing people to re-evaluate Japanese shares. People are also re-assessing Japanese banking shares because of the rise in Japanese yields. ”