Nikkei ticks up to 1-year high as global cyclicals gain

TOKYO, Oct 28 (Reuters) - The Nikkei share average ticked up
on Monday to a one-year high, with investors shifting funds to
global cyclicals from domestic demand-oriented shares on hopes
of a U.S.-China trade deal.
The Nikkei share average .N225 rose 0.27% to 22,861.59,
hitting its highest levels in a year.
The broader Topix .TOPX gained 0.08% to 1,649.79.
Lifting the mood were comments from U.S. and Chinese
officials that they are "close to finalizing" some parts of a
trade agreement after high-level telephone discussions on
Friday. Traders reacted quickly by buying shares perceived to be
sensitive to global economic cycles, including semi-conductor
chip-related shares and shipping firms.
Chip-related shares topped the list of biggest gainers in
the Nikkei in morning trade.
Sumco 3436.T rose 4.9%, Screen Holdings 7735.T 4.2% and
Taiyo Yuden 6976.T 3.4%.
Industrial robot manufacturer Fanuc 6954.T gained 2.4%
while Honda Motor 7267.T edged up 1.2%.
Shippers also advanced with Mitsui OSK Lines 9104.T
gaining 2.0% and Nippon Yusen 9101.T up 1.3%.
On the other hand, investors pulled some funds out of
domestic demand oriented shares, which they had bought to reduce
exposure to trade war risks.
The Tokyo Stock Exchange's foods company subindex .IFOOD.T
shed 0.9% while its real estate industry subindex .IRLTY.T
lost 0.8%.
Defensive shares were also not in favour, with land
transport shares .IRAIL.T , such as railway operators, and
drugmakers .IPHAM.T both under water.
East Japan Railway 9020.T , which has been also hit by
damages from torrential rains in recent weeks, fell 1.6% while
Mitsubishi Estate 8802.T dropped 1.0%.
Elsewhere, Suruga Bank 8358.T rose 10.5% after Nojima Corp
7418.T said on Friday it will buy all the remaining stake of
the troubled bank held by its founder family.
Nojima, operator of electronic goods chain, gained 1.3%.

(Editing by Sonya Hepinstall)