Renewed hope for a trade deal gave Nikkei a boost
The stock market in Japan started the new stock market month with a profit on Tuesday. The large Japanese export companies were popular because of the renewed hope for a trade deal between the United States and China. Investors also processed the so-called Tankan index of the Japanese central bank. The index measuring the confidence of large Japanese industrial companies continued to weaken in September to the lowest level in more than six years. The decline was less than feared.
The Nikkei in Tokyo finally closed 0.6 percent higher at 21,885.24 points. Honda automaker and tire manufacturer Bridgestone, which generate a lot of sales from abroad, rose 2.5 percent and 2.2 percent. The Japanese suppliers of the American technology giant Apple were also on the rise. JPMorgan analysts came with a positive report about Apple thanks to better-than-expected sales of the new iPhones. Murata Manufacturing and TDK indicated 2.8 percent and 2.7 percent.
SoftBank won 1.8 percent after the news that the WeWork mega-trade show will not go ahead for the time being. The We Company, the parent company of the lessor of shared workspaces, has formally submitted a request to withdraw its plans for a stock market debut. SoftBank, a major investor in WeWork, had a great deal of criticism of the IPO and of the now departed CEO and co-founder Adam Neumann.
Chinese stock exchanges closed
The fairs in China and Hong Kong were closed due to the celebration of the 70th anniversary of the People’s Republic of China. A demonstration ban applies in Hong Kong. There have been protests in the city for months against Beijing’s growing influence on autonomous Hong Kong. The stock market in Shanghai will remain closed for a whole week. Trading will resume on Wednesday in Hong Kong.
In Seoul, the Kospi climbed 0.4 percent. The All Ordinaries in Sydney gained 0.8 percent. The Australian central bank cut interest rates by 25 basis points to 0.75 percent to stimulate the economy. That is the lowest level ever.