Tokyo’s benchmark Nikkei 225 finished more than 18 percent higher over the year, bolstered recently by hopes for progress in US and China trade talks.
In the final trading session of the year, the bellwether index closed at 23,656.62, an 18.2 percent gain compared with its closing price at the end of last year.
The broader TOPIX gained more than 15 percent over the year, as the Tokyo markets close until Monday next week.
Photo: AFP
The Nikkei got off to a bad start this year, with sharp declines following its first annual loss since 2011, when a massive earthquake and tsunami hit the world’s third-largest economy.
The market since then has been dominated by the trade dispute between the world’s top two economies, the US and China, resulting in “seesaw trade,” Daiwa Securities Capital Markets chief technical analyst Eiji Kinouchi said.
Over the past few weeks, Japanese shares have enjoyed sizable gains, following US stocks to new highs and reflecting investor relief over a recent thaw in US-China trade ties.
“The primary focus of the market next year is the US presidential election,” Kinouchi said. “This will also affect prospects for the US-China trade negotiations.”
The Nikkei yesterday lost 0.76 percent and the TOPIX fell 0.68 percent as investors cashed in ahead of the New Year holidays, with thin trading.
“Many investors are taking nine straight days of holidays, including today,” which resulted in light volumes, Okasan Online Securities Co said in a note.
Elsewhere in Asia, markets were mixed with activity thinning as investors wind down for the end of the year, with lingering optimism over easing US-China trade tensions driving some gains.
Hong Kong finished up 0.3 percent, while Shanghai was more than 1 percent higher.
Taipei, Sydney, Jakarta and Manila were also marginally down.
“Investors appear to be growing a tad apprehensive about chasing the record setting US equity market risk-reward premise into year-end,” Stephen Innes, chief Asia market strategist at AxiTrader said in a note.
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