Japanese stocks rose to a three-month high on Monday, as U.S. President Donald Trump’s threats against China over new security laws for Hong Kong were less threatening than feared.
The benchmark Nikkei average gained 1.2% to 22,135.75 by the midday break, a high last seen in late February. The broader Topix edged up 0.5% to 1,571.34 though decliners outnumbered gainers by a ratio of 54 to 46.
The rally was led by short-covering as some investors had worried Trump could ditch his trade deal with China or call an immediate end to privileges to Hong Kong after the Chinese parliament passed new security legislation for the semi-autonomous city last week.
Investors are now focused on the global economic recovery as more countries gradually move to re-open their economies — the main driving force of the market’s rally since late March.
Source : Reuters