Japanese shares edged up on Tuesday as traders tiptoed back into equities, amid indications of a slight easing of trade spats between Washington and Beijing and continued hopes for new stimulus moves by leading economies.
On Monday, Washington extended a stay that allows China’s Huawei Technologies to purchase components from U.S. firms by 90 days, to supply current customers.
The Nikkei share average surged 0.4% to 20,642.72, while the broader Topix added 0.5% to 1,501.95 by the midday break.
On Wall Street, all three main stock indexes gained in a single day, with Apple scaling 1.9% to provide the most significant boost to the Nasdaq.
This helped Tokyo-listed Apple suppliers, with Taiyo Yuden and TDK Corp advancing 1.1% and 1.0%, respectively, and Foster Electric rose 1.3%.
After speaking with Apple’s chief executive Tim Cook on Sunday, U.S President Donald Trump stated the CEO “made case” that tariffs could damage Apple, given that Samsung’s products wouldn’t be subject to those same duties.
Tokyo-listed chipmaking-related companies additionally got a boost after the U.S. Philadelphia semiconductor index rose 1.9% on Monday as Huawei’s U.S. chip suppliers, such as Micron Technology, soared.
Semiconductor manufacturing gear maker Screen Holdings surged 3.8%, and chipmaking gear supplier Tokyo Electron recovered 1.1%. Semiconductor test tools supplier Advantest earned 1.4%.
Hopes for additional stimulus helped sentiment after media reported that Germany is ready to increase fiscal spending, and after the People’s Bank of China moved to lower businesses borrowing costs by setting a brand new lending reference rate.