| Headline indices of the Japan share market closed higher on Monday, 18 March 2019, as risk sentiments underpinned by rises in U.S. market last Friday on optimism over the China-US trade talks and on expectations the Fed will point to just one rate hike in 2019 when it meets later this week. Total 32 subsectors of the 33 subsectors of the Tokyo Stock Exchange inclined, with shares in Metal Products, Chemicals, Securities & Commodities Futures, Oil & Coal Products, Other Financial Business, Machinery, and Insurance issues being notable gainers. At closing bell, the 225-issue Nikkei Stock Average added 133.65 points, or 0.62%, at 21,584.50. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 11.05 points, or 0.7%, at 1,613.68. Market participants commenced trading with firm footing on reports top officials from the world's biggest economies working on an agreement to end their long-running tariffs spat, which was a major drag on markets at the end of 2018. While there are few details on the talks as they stand - and a floated summit between Donald Trump and Xi Jinping looks to be later than expected - upbeat comments from both sides are keeping investors broadly happy for now. The Fed's next meeting will be closely followed in hopes it will give an idea about its plans for interest rates, with some observers suggesting it will pare its pace of hikes in the face of a slowing global economy. With inflation still tame as US growth decelerates, economists also say the central bank will lower the number of hikes they expect this year, from the two projected in December, while there is even talk of a possible cut at some point. Fed Chairman Jerome Powell is due to announce the second policy decision of the year on Wednesday by the rate-setting Federal Open Market Committee. The benchmark interest rates is now in a range of 2.25 to 2.5% and futures markets see no more rate hikes in 2019. A slew of other central bank gatherings, including the Bank of England, will give further clues on monetary policy. Shares of semiconductor-linked issues such as Tokyo Electron rose advanced on following a robust earnings report from U.S. chipmaker heavyweight last week Shares of companies with large exposure to China extended gains on reports about substantial progress in U.S.-China trade negotiations. ECONOMIC NEWS: Japan's goods trade deficit bounced from its four months of weakness in the month of February despite sluggish Chinese demand, which kept exports growth under par. Japan posted 339.0 billion yen ($3 billion) of trade surplus. Exports fell for the third straight month, slipping 1.2% to 6.38 trillion yen, while imports declined 6.7% to 6.05 trillion yen, sliding for the second month in a row. Japan posted a merchandise trade surplus of 339.002 billion yen in February, the Ministry of Finance said on Monday, following the 1.415 trillion yen deficit in January. Exports were down 1.2% on year to 6.384 trillion yen, following the 8.4% slide in the previous month. Imports tumbled an annual 6.7% to 6.045 trillion yen, following the 0.6% drop a month earlier. CURRENCY NEWS: The yen changed in the mid-111 zone against greenback, partly due to a positive performance by equity markets at the start of the week on optimism over the China-US trade talks, while attention turns to the Federal Reserve's next policy meeting this week. The possibility that Brexit will be delayed is now higher after last week's voting marathon. The dollar was quoted at 111.55-56 yen compared with 111.45-55 yen in New York and 111.65-66 yen on Friday in Tokyo. The euro, meanwhile, fetched 126.27-31 yen against 126.19-29 yen in New York and.45-49 yen in late Friday afternoon trade in Tokyo. Powered by Capital Market - Live News |