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Japan Nikkei eases on Sino-U.S. trade paralysis

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Capital Market
Last Updated : Nov 19 2019 | 11:04 AM IST
The Japan share market declined on Tuesday, 19 November 2019, as concerns over Sino-U.S. trade deal negotiations after reports that China was pessimistic about the chances of a pact because Donald Trump is not in favour of rolling back tariffs. Around late afternoon, the 225-issue Nikkei Stock Average declined 96.10 points, or 0.41%, to 23,320.66, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange sank 4.22 points, or 0.25%, at 1,696.50.

Total 23 issues of the 33 industry category of Topix index dived into negative territory, with Nonferrous Metals, Mining, Machinery, Rubber Products, and Electric Appliances issues being notable losers, while Pharmaceutical, Real Estate, Securities & Commodities Futures, and Glass & Ceramics Products issues were notable gainers.

Investors remain cautious over prospects for an agreement in trade talks between the United States and China with stock markets around the world swinging on every hint of progress or tension. News that the United States granted another 90 days for companies to cease doing business with China's telecoms giant Huawei competed with reports suggesting Beijing was 'pessimistic' regarding the trade deal anytime soon as Trump is supposedly not in favour of any tariff rollbacks.

That came following a report over the weekend by Chinese state media that constructive trade talks had occurred at a high level between Beijing and Washington. The two economic powerhouses have been working toward reaching a phase one deal, expected to be signed soon, following a tariff war that has lasted for more than a year and dented investor sentiment.

Shares of major exporters were lower, pressured by a firmer yen against the dollar, with Toyota down 0.7%, Honda down 1.2%, and Tokyo Electron down 0.5%.

Z Holdings, formerly known as Yahoo Japan, dropped 5.7%, after adding 1.2% in the previous session following its announcement of a merger with mobile messaging app Line.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, appreciated against greenback. The Japanese yen traded at 108.54 against the dollar after strengthening from levels above 108.8 in the previous session.

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First Published: Nov 19 2019 | 10:40 AM IST

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