Tokyo, Japan (AFP) — Tokyo’s benchmark Nikkei index finished 2019 more than 18 percent higher over the year, boosted recently by hopes for progress between the US and China over trade talks.

In the final trading session of the year, the bellwether Nikkei 225 index closed at 23,656.62 points, an 18.2-percent gain compared to its closing price at the end of last year.

The broader Topix index gained more than 15 percent over the year, as the Tokyo markets close until next Monday.

The Nikkei index got off to a bad start in 2019, 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 war between the world’s top two economies, the US and China, resulting in “seesaw trade,” said Daiwa Securities chief technical analyst Eiji Kinouchi.

In recent weeks, Japanese shares have enjoyed sizable gains, following US stocks to record highs, 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 told AFP.

“This will also affect prospects for the US-China trade negotiations,” he said.

On Monday the Nikkei 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 said in a note.

The dollar fetched 109.12 yen in Asian afternoon trade, against 109.46 yen in New York on Friday.

Stephen Innes, chief Asia market strategist at AxiTrader, said in a note: “Markets investors appear to be growing a tad apprehensive about chasing the record setting US equity market risk-reward premise into year-end.”