TOKYO — Japan’s Nikkei share average rose on Monday as indications of progress in US-China trade talks boosted hopes of a deal between the major economies.
The Nikkei was up 0.2 percent at 37,573.27. The broader Topix edged 0.02 percent higher at 2,734.09.
“Investors bought stocks on optimism that the trade talks between the US and China made progress,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.
“But gains were limited as they sold stocks on the rally. Both the Nikkei and Topix rose sharply, but those rallies were based just on expectations on the trade talk progress.”
The Nikkei has risen about 20 percent from its close on April 7, when the index fell to a 1-1/2-year low after the announcement of US sweeping tariffs.
The index traded more than 7 percent above the 25-day average on Friday, an indication that the market was overheated, said Maki Sawada, senior strategist at Nomura Securities.
The United States and China ended trade talks on a positive note on Sunday, with US officials touting a “deal” to reduce the US trade deficit, while Chinese officials said the sides had reached “important consensus” and agreed to launch another new economic dialogue forum.
