Tokyo shares gain in cautious mood; Z Holdings, Line climb on merger announcement

By Tomo Uetake
TOKYO, Nov 18 (Reuters) - Japan's stock benchmark Nikkei
rose on Monday on cautious optimism, underpinned by gains in
global peers and prospects of a Sino-U.S. trade deal, while Z
Holdings and Line Corp advanced after a formal merger
announcement.
The Nikkei average .N225 gained 0.5% to 23,416.76. The
broader Topix .TOPX added 0.2% to 1,700.72, with defensive
sectors such as pharma .IPHAM.T and telecom .ICOMS.T leading
the rally, up 1.3% and 0.9%, respectively.
On Friday, Wall Street's major stock indexes closed at
record levels, fuelled by fresh optimism over a potential easing
of U.S.-China trade tensions and by big gains in shares of
healthcare companies. .N/C
Chinese state media Xinhua said on Sunday that China and the
United States had "constructive talks" on trade in a high-level
phone call on Saturday, without giving details. China and Hong Kong stocks started the week on a strong note
on Monday as a cut in a key interbank lending rate on Monday
stoked hopes of more stimulus measures to shore up the slowing
economy. Japan's benchmark Nikkei was flat in early morning but rose
after Hong Kong shares opened firmer .HSI , later climbing more
than 1%, despite clashes between anti-government protesters and
police on the island, traders said. In Tokyo, Z Holdings 4689.T , formerly known as Yahoo
Japan, and Line Corp 3938.T gained 1.2% and 2.2%,
respectively, after the two sides formally annouced a merger
plan shortly before the market open to create a $30 billion tech
giant. SoftBank Corp's 9434.T internet unit Z Holdings was the
sixth-most traded stocks on the main board, while the messaging
app firm Line became the tenth-most traded.
Semiconductor-related shares fared well after Applied
Materials AMAT.O forecast first-quarter revenue and profit
above Wall Street estimates as the U.S. chip gear maker expects
more clients to upgrade their equipment ahead of the 5G rollout
in key markets. Tokyo-listed Advantest 6857.T surged 3.7%, Disco Corp
6146.T jumped 2.9% and Tokyo Electron 8035.T rose 1.8%.
Stella Chemifa 4109.T soared 6.6% on media reports that
the inorganic fluorine compounds maker has obtained approval
from the Japanese government to export liquid hydrogen fluoride
to South Korea.
Elsewhere, Tokyo bourse's Mothers market for startups
climbed 1.8% .MTHR to log its biggest daily gain in two
months, thanks to biopharmaceutical firm AnGes 4563.T and
cloud-based software provider Money Forward 3994.T , up 5.4%
and 4.7% respectively.