* Nikkei at new 1-mth high, posts biggest weekly gain since
Apr
* Weak yen pushes up machinery and auto makers
* SoftBank Group drops on news that WeWork may slash IPO
valuation
By Tomo Uetake
TOKYO, Sept 6 (Reuters) - Japanese shares hit a fresh
one-month high on Friday as better-than-expected U.S. economic
data and news of scheduled trade talks between the United States
and China bolstered appetite for global stocks.
The benchmark Nikkei average .N225 gained 0.54% to
21,199.57, its highest closing level since Aug. 1. For the week,
the index advanced 2.4%, its biggest gain in five months.
"Although the mood is getting better, I don't think
investors are fully optimistic," said a trader at a Japanese
asset manager. "If the Nikkei can break above the 200-day moving
average next week, it may create a feeling of FOMO (fear of
missing out)."
The Nikkei's 200-day moving average stood around 21,227.
Global equity markets welcomed upbeat U.S. data and news
that Washington and Beijing agreed to high-level talks early in
October, raising hopes for a de-escalation of the damaging
conflict. The dollar climbed to a one-month high of 107.235 yen
overnight JPY= , providing a tailwind for shares of Japanese
exporters as a weak yen enhances corporate profits when they are
repatriated.
Machinery .IMCHN.T and automakers .ITEQP.T , major
beneficiaries of a weakening yen, were among the best performing
sectors of the Tokyo's 33 subindexes, up 1.4% and 1.2%,
respectively. Nissan Motor Co 7201.T rose 2.5% and Honda Motor
Co 7267.T climbed 3.0%.
Bank shares gained broadly after U.S. Treasury yields ticked
higher overnight but then pared gains after the Bank of Japan
governor Haruhiko Kuroda told the Nikkei newspaper that
deepening negative rates were among the bank's policy options.
Mitsubishi UFJ Financial Group 8306.T and Bank of Kyoto
8369.T rose 0.8% and 1.3%, respectively, while the banking
sector subindex .IBNKS.T added 0.5%.
Bucking the trend, Nikkei heavyweight SoftBank Group Corp
9984.T shed 2.7% on media reports that WeWork, owner of office
space sharing startup The We Company, might slash the valuation
it will seek in a planned initial public offering. WeWork is
backed by SoftBank Group, which has invested or committed to
invest $10.65 billion since 2017.
Rakuten Inc 4755.T dived 5.2% after media reports that the
internet firm is pushing back the commercial launch of its
wireless carrier service by six months because of delays in
building the network. Credit Saison Co 8253.T gained 2.2% after it and Daiwa
Securities 8601.T announced a capital alliance, with Daiwa
acquiring 5% of Credit Saison's shares. Daiwa added 0.9%.
The broader Topix .TOPX rose 0.17% to 1,537.10, its
highest close in a month, with turnover of 2.09 trillion yen
($19.5 billion), below its daily average of 2.29 trillion yen
over the past year.
($1 = 107.0000 yen)