Japan: Market on U.S.-China trade progress hopes

Japan share market closed at one-year high on Wednesday, 23 October 2019, amid renewed hopes for progress in U.S.-China trade talks after White House economic adviser Larry Kudlow's comments suggested trade talks with China are making progress toward the signing of a partial deal. However, market gains were capped amid ongoing uncertainty about Britain's planned exit from the European Union. At closing bell, the 225-issue Nikkei Stock Average was up 76.48 points, or 0.34%, to 22,625.38, the highest closing since October 18, 2018, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange added 9.54 points, or 0.6%, at 1,638.14.

Total 30 issues of the 33 industry category of Topix index inclined into positive territory, with Marine Transportation, Pharmaceutical, Nonferrous Metals, Mining, Other Financial Business, and Land Transportation issues being notable gainers.

Brexit was back in the spotlight, after U.K. lawmakers voted Tuesday to let Prime Minister Boris Johnson's Brexit plan to proceed to the next step in Parliament, but rejected his rapid timetable for approval, saying that more time was needed to scrutinize the bill. The defeat in parliament made it unlikely that Britain would finalize its exit by Prime Minister Boris Johnson's Oct. 31 target. Johnson said it was up to the EU to decide whether it wanted to delay Brexit and for how long.

On the international trade front, President Donald Trump said Monday that talks between Washington and Beijing are going very well. Top trade negotiator Robert Lighthizer also said that the U.S. aims to finish the first phase of talks by mid-November when the two countries meet in Chile.

Eisai Co. rocketed 18% after its U.S. research partner Biogen Inc. announced that it will aim to gain regulatory approval for an Alzheimer's treatment. Among other winners were air conditioner-maker Daikin Industries and industrial robot producer Yaskawa Electric Corp.

By contrast, Sumitomo Chemical Co. plunged due to a downward revision to its net profit projection for the year to March 2020. Among the battered semiconductor-related names, chipmaker Renesas Electronics Corp. fell 5.26%, chipmaking gear manufacturer Tokyo Electron 4.11% and silicon wafer producer Sumco Corp. 2.62%. Also on the negative side were technology investor Softbank Group Corp. and clothing store chain Fast Retailing Co.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, was tad stronger against greenback. The Japanese yen traded at 108.36, strengthening from 108.51 seen earlier.

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