Nikkei rises to 1.5 week high on boost from deals, Wall St

TOKYO: Japan's Nikkei share average rose to a 1-1/2-week high on Tuesday as deals news added to a solid Wall Street performance, with oil refiners Idemitsu Kosan and Showa Sekiyu jumping after they said they had agreed to merge in April next year.

Shares of the two firms rallied 12.6 per cent and 9.7 per cent, respectively, after the announcement. They plan to merge via a share swap, and Showa Shell will be delisted on March 29.

Yahoo Japan was in the spotlight as well, surging 11 per cent on news that SoftBank Group would buy roughly $2 billion worth of its shares through a subsidiary.


The Nikkei ended 0.7 per cent higher at 22,196.89, its loftiest closing level since June 29.

Equities were boosted after the Dow and the S&P 500 posted their biggest gains in over a month overnight, with focus steadily turning away from U.S.-China trade angst that buffeted financial markets last week.

"Other markets are leaning towards 'risk on' and this is supportive for Japanese shares. There are also expectations that trade frictions won't worsen," said Chihiro Ohta, equity general manager at SMBC Nikko Securities, tipping the Nikkei to stretch its recent highs.

Exporters such as high-techs and automakers were buoyed by the yen's retreat to a one-week low against the dollar, with Tokyo Electron gaining 1.8 per cent and Advantest Corp up 0.9 per cent.

Honda Motor Co rose 1.0 per cent and Nissan Motor Co gained 3.8 per cent, despite the automaker's admission on Monday that it had improperly measured exhaust emissions and fuel economy for 19 vehicle models sold in Japan.

The broader Topix advanced 0.3 per cent to 1,716.13.