Japanese shares rise on trade hopes, Topix at 5-month high

By Tomo Uetake
TOKYO, Sept 24 (Reuters) - Japanese shares rose on Tuesday,
buoyed by optimism that high-level U.S.-China trade talks will
take place early next month and investors bought ahead of
companies going ex-dividend later in the week.
The benchmark Nikkei average .N225 edged 0.1% higher to
close at 22,098.84 points, while the broader Topix .TOPX
advanced 0.4% to 1,622.94, its highest closing since April 23.
U.S. stock futures ESc1 rose 0.3%, helped by comments from
Treasury Secretary Steven Mnuchin that U.S.-China trade talks
will take place in two weeks. "While the Nikkei was fairly well supported, we need more
catalysts for further rises," said Takeo Kamai, head of
execution service at CLSA Securities Japan.
"Although speculators have reacted to the trade-related
headlines, real-money people appear to be staying on the
sidelines."
Analysts said speculative traders bought the Topix and
Nikkei futures to get ahead of a wave of expected buying -
estimated to be 700 billion yen ($6.5 billion) in total - later
this week by passive investors who will be reinvesting
dividends.
However, a slowing global economy remained a headache for
financial markets, as poor business activity readings from the
euro zone deepened fears of a recession and suggested more
stimulus was required. Mining .IMING.T and sea transport .ISHIP.T were the
worst performing sectors among the Tokyo bourse's 33 subsector
indexes, down 1.8% and 1.6%, respectively.
Other notable movers include Oriental Land 4661.T , which
jumped 3.0% after the Tokyo Disney Resort operator announced it
would raise theme park admission fees from Oct. 1.
Mitsubishi Corp 8058.T dropped 0.6% after the country's
biggest trading house said a trader at its Singapore-based unit
had lost $320 million through unauthorised transactions in crude
oil derivatives. Elsewhere, Nissan Motor 7201.T slipped 1.0% after the U.S.
Securities and Exchange Commision said the carmaker and its
former chief executive Carlos Ghosn have agreed to settle the
illicit compensation claims from the regulator. Nissan will pay
$15 million, while Ghosn agreed to a $1 million civil penalty
and a 10-year ban from serving as an officer or director of a
publicly traded U.S. company, the SEC said. ($1 = 107.5300 yen)