TOKYO, Sept 6 (Reuters) - Japanese shares reached another one-month on Friday as better-than-expected U.S. economic data and hopes for progress from coming trade talks between the United States and China bolstered risk appetites.
The benchmark Nikkei average gained as much as 0.7% to 21,241.29 in mid-morning trade, its highest level since Aug. 1, while the broader Topix rose as much as 0.5% to 1,542.38, its highest in a month.
Global equity markets welcomed upbeat data from the United States and news that Washington and Beijing agreed to high-level talks early in October, raising hopes for a de-escalation of the damaging conflict.
On Thursday, ADP data showed U.S. private payrolls increased in August at their fastest pace in four months. Separately, U.S. the services industry rebounded last month to its fastest expansion since February, according to the ISM’s non-manufacturing PMI.
The dollar climbed to a one-month high of 107.235 yen overnight, providing a tailwind for shares of Japanese exporters as a weak yen enhances corporate profits when they are repatriated.
Machinery and automakers, major beneficiaries of a weakening yen, were the two top performing sectors of the Tokyo’s 33 subindexes, up 1.5% and 1.3%, respectively. Nissan Motor Co climbed 2.5% and Honda Motor Co advanced 2.8%.
Bank shares gained broadly after U.S. Treasury yields ticked higher overnight. Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group rose up 1.7% and 1.4%, respectively, while the banking sector subindex added 1.2%.
Bucking the trend, Nikkei heavyweight SoftBank Group Corp shed 3.8% on media reports that WeWork, owner of office space sharing startup The We Company, might slash the valuation it will seek in a planned initial public offering. WeWork is backed by SoftBank Group, which has invested or committed to invest $10.65 billion since 2017.
Rakuten Inc dived 6.1% after media reports that the internet firm is pushing back the commercial launch of its wireless carrier service by six months because of delays in building the network.
Credit Saison Co jumped 3.0% after it and Daiwa Securities announced a capital alliance, with Daiwa acquiring 5% of Credit Saison’s shares. Daiwa rose 1.7%. (Reporting by Tomo Uetake; Editing by Richard Borsuk)