By Stanley White
TOKYO, Dec 17 (Reuters) - Japanese stocks rose to their
highest level in more than a year on Tuesday, tracking Wall
Street's run to a record closing high on renewed optimism over
the U.S.-China interim trade deal.
The Nikkei index .N225 settled 0.47% higher at 24,066.12,
with the healthcare and industrials sectors leading the gains.
Earlier in the session, the benchmark index reached its highest
level since Oct. 4, 2018. It is up 19.67% so far this year.
U.S. National Economic Council Director Larry Kudlow on
Monday said the "phase one" deal was "absolutely completed" and
reiterated comments made by U.S. Trade Representative Robert
Lighthizer that U.S. exports to China would double in exchange
for a reduction in U.S. tariffs.
Chinese officials have been more cautious, emphasising that
the trade dispute has not been completely settled.
Investors are betting that the deal, which is expected to be
signed in the first week of January, will finally de-escalate
the tariff spat that had dragged on for more than a year, making
it the biggest risk to the global economic outlook.
The de-escalation of the dispute is also a positive for
earnings of Japanese exporters.
"Japan took the lead from New York stocks. In addition,
there are signs that the U.S. manufacturing sector is turning
around, which is a positive for Japanese makers of electronic
parts, heavy machinery, and materials," said Kiyoshi Ishigane,
chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co
in Tokyo.
"U.S.-China relations could easily sour again in the future,
but for now the trade deal is being taken as a positive."
There were 137 advancers on the Nikkei index against 82
decliners on Tuesday.
The top percentage gainers in the index were chemicals maker
Tosoh Corp 4042.T , up 5.21%, followed by healthcare firm M3
Inc 2413.T , up by 4.7%, and oil producer Inpex Corp 1605.T ,
which gained 3.97%.
The biggest percentage losers were ad agency Dentsu Inc
4324.T , down 6.28%, followed by ship builder Mitsui E&S
Holdings Co Ltd 7003.T , down 3%, and video game maker Bandai
Namco Holdings Inc 7832.T , which shed 2.39%.
The broader Topix index .TOPX rose 0.59% to 1,747.20, also
reaching the highest since Oct. 10, 2018.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 1.29 billion, compared to the average of
1.24 billion shares in the past 30 days.