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* Lixil puts on MBO despite the denial of his colleagues
* The Baltic Dry index jumps Friday
* The dollar up more than a PC vs yen last week
By Ayai Tomisawa
TOKYO, Jan. 21 (Reuters) – The Japanese stock market hit its highest level in a month, raising US stocks, pushing up cyclical stocks like shippers, while weakening the stock market. yen stimulated exporters.
The average Nikkei share rose 0.5% to 20,758.74 at lunch break after reaching 20,892.68, its highest level since December 19th.
US stocks rallied on Friday as growing hopes from the United States and China to resolve their trade dispute gained market share in all sectors.
According to badysts, the Nikkei is expected to reach 21,000, a level it had negotiated last month before a year-end rout.
"It would be a little difficult to reach the 22,000 with the current catalysts, but the market is recovering," said Shoji Hirakawa, chief strategist at Tokai Tokyo Research Institute.
Cyclical stocks such as exporters gained ground. TDK Corp. shares jumped 3.6%, while those of Sumco Corp and Nidec Corp jumped 4.1% and 3.8%, respectively.
The Japanese yen recovered 0.15% against the dollar after falling more than 1% last week.
"Commodity trading advisers will likely hedge short positions in Japanese equities due to a recovery in dollar-yen levels and oil prices," said Masanari Takada, multi-badet strategist at Nomura Securities.
Shippers outperformed after the Baltic Dry Index, or transportation costs, jumped 3.3%. Mitsui OSK Lines shares rose 3%. Kawasaki Kisen climbed 4.1%, after the Nikkei daily announced that the company was planning to resume paying a dividend for the year ending in March 2020.
Shares of Lixil Group Corp. jumped 7% after Nikkei Business announced that its board of directors had decided last year to consider delisting Japan through a joint venture. repurchase by management and a transfer of its seat in Singapore. The company denied the report, but investors still welcomed it.
"Lixil's share price had fallen sharply due to short selling, but short sellers are expected to hedge their positions because, in the event that the company opts for a buy-out by management, it would buy the title at a higher price than the one currently traded "said a fund manager in a Japanese badet management company.
The broader Topix rose 0.8 percent to 1,569.83. (Report by Ayai Tomisawa, edited by Rashmi Aich)
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