HONG KONG/ TOKYO: Japan’s Nikkei share average gained on Wednesday as investors awaited developments in U.S.-Japan tariff talks, helping the benchmark to register its first monthly gain since December.

The Nikkei added 0.6% to 36,045.38, its highest close since March 28. The gain marked the index’s fifth straight rising session, its longest winning streak since last August.

The broader Topix also climbed 0.6% to 2,667.29, a one-month high.

Sentiment was buoyed after Japan’s top trade negotiator, AKAZAWA Ryosei, said he aims to make steady progress in tariff negotiations with the U.S. He travelled to Washington later in the day to meet his counterparts for a second round of discussions.

That followed fresh data showing Japan’s March factory output fell more than expected, dragged down by its key motor vehicle industry as U.S. President Donald Trump’s tariff policies continued to rattle manufacturers.

The benchmark index has now recouped all the losses induced by the early-April tariff announcements, gaining 1.2% for the month and ending its first month in the green since December.

Markets have largely restored the calm in recent weeks on hopes of easing trade tensions. Moving away from U.S. assets amid the tariff-induced chaos also helped Nikkei’s rebound.

“For the Nikkei to climb further, a concrete cue – such as an agreement between Japan and the U.S. — is needed,” said Shuutarou Yasuda, a market analyst at Tokai Tokyo Intelligence Laboratory.

The stock that gained the most on Wednesday among the top 30 core Topix names was Sony Group, up 7.1%, after a report the group is considering spinning off its semiconductor arm, in a move that would unlock value in the company.

The underperformers were Hitachi, down 6.1%, followed by Toyota Motor, which lost 2.1%.

Around the region, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.7% on Wednesday.

Elsewhere, the Bank of Japan (BOJ) is widely expected to leave rates unchanged at its two-day policy meeting that ends on Thursday.

A weaker yen generally benefits Japanese equities by boosting the value of exporters’ overseas revenues. Last month, Trump accused Tokyo of pursuing policies to weaken the yen, arguing that it gave Japan an unfair trade advantage.

Reuters