TOKYO, May 21 (Reuters) – Japan's Nikkei shares averaged higher on Monday morning, as exporters were boosted by an increase in the dollar's rise against the yen.
The dollar rally followed news of a relief in US trade tensions. US-China, offsetting weakness in financial stocks after recent gains in US yields. UU They will stabilize.
The Nikkei advanced 0.4 percent to 23,023.51 mid-morning, after the dollar rose 0.2 percent to 110.99 yen in early Asian trade, approaching a four-month high of 111,085 yen established on Friday.
The Nikkei broke the psychologically important level of 23,000 for the first time since the beginning of February. Analysts see the next level of resistance at 23,122.45, an intraday low marked on February 2.
EE. UU Stock futures were won after Treasury Secretary Steven Mnuchin said on Sunday that the United States and China had agreed to put their skirmishes "on hold" to work on a broader trade agreement.
The future S & P 500 E-mini rose 0.6 percent, the Nasdaq 100 e-minis was 0.8 percent higher with Dow e-minis also up 0.8 percent.
"A combination of a dollar-yen level above 111 and higher US stock futures is favorable for Japanese stocks, while sentiment has recovered," said Yutaka Miura, senior technical badyst at Mizuho Securities.
The Daiwa Securities research found that companies expect a 2 percent increase in pretax earnings for the fiscal year through March 2019, and most of them expect the dollar to be priced at 105 yen on average .
A weaker yen boosts the benefits that the Japanese get abroad when they are repatriated.
TDK Corp rose 2.2 percent, Daikin Industries rose 1.7 percent and Nitto Denko gained 1.8 percent.
Insurers and banks performed poorly. MS & AD Insurance fell 2.6 percent, while Mizuho Financial Group lost 0.7 percent.
On the other hand, Japan Tobacco fell 0.9 percent after the company reported weaker sales of tobacco in the domestic market in April.
The broader Topix rose 0.2 percent to 1,819.35. (Reorting by Ayai Tomisawa Edition by Eric Meijer)