Japanese Nikkei rises on US-China trade hope

Tokyo, -The Nikkei share average of Japan rose on Monday as indications of progress in the US trade increased the hope of an agreement between the most important economies. From 0202 GMT, the Nikkei was up 0.2% at 37,573.27. The wider Topix rescued 0.02% to 2,734.09. Shutarou Yasuda, a market analyst at Tokyo Intelligence Laboratory, said: “Investors bought shares on optimism that progresses trade talks between the US and China,” Shutarou Yasuda said. “But profits were limited as they sold shares on the rally. Both the Nikkei and Topix rose sharply, but the rallies were based on the expectations of the progress of the trade.” The Nikkei rose about 20% on April 7 when the index fell to a low of 1-1/2 years after the announcement of the US rates. The index traded over 7% above the 25 -day average on Friday, an indication that the market was overheated, says Maki Sawada, senior strategist at Nomura Securities. The United States and China ended trade talks on a positive note on Sunday, with US officials using an ‘agreement’ to reduce the US trade deficit, while Chinese officials said the parties had reached ‘important consensus’ and agreed to start another new economic dialogue forum. The manufacturer of equipment manufacturer jumped 4.3% to provide the biggest boost to the Nikkei. Property developer Tokyu Fudosan rose 5.18% after predicting a record -annual net profit of 85 billion yen for the year to March 2026. Drugmakers have fallen concerns about falling drug prices after US President Donald Trump said he would sign an executive order on reducing prescription drugs and pharmaceutical prices. Daiichi Sankyo lost 5.44%. The pharmaceutical sector dropped 4.3% to become the worst performer under the Tokyo Stock Exchange’s 33 industry-Sub index. Nippon Steel fell 4.94% after the steel manufacturer said it expected the net profit in the financial year to slide by 43% in the financial year with March 2026. This article was generated from an automated news agency feed without editing to text.