Total 23 issues of the 33 industry category of Topix index dived into negative territory, with Insurance, Other Financial Business, Electric Power & Gas, Iron & Steel, and Marine Transportation issues being notable losers, while Fishery, Agriculture & Forestry, Services, and Glass & Ceramics Products issues were notable gainers.
Japanese shares started higher, taking their lead from a record closing high on Wall Street on Monday after U.S. President Donald Trump calmed nerves by saying Washington is on track to sign a deal with Beijing to de-escalate a bruising trade war. Additionally, China's finance ministry announced starting January 1, it will lower import tariffs on over 850 products ranging from frozen pork to some types of semiconductors. However, gains in Japanese stocks quickly faded as the year-end holiday mood started to set in.
The largest percentage losers in the index were ink jet printer maker Seiko Epson Corp down 2.5%, followed by life insurers T&D Holdings Inc losing 1.9%, and Dai-ichi Life Holdings Inc down by 1.85%. The largest percentage gainers in the index were Nippon Sheet Glass Co up 4.2%, followed by advertising agency Dentsu Inc gaining 1.6%, and electronic components maker Taiyo Yuden Co up 1.4%.
ECONOMIC NEWS: the Bank of Japan released the minutes from its monetary policy meeting on October 30 and 31, showing few Bank of Japan board members said the central bank must work carefully with the government in dealing with the next economic downturn. "The BOJ should prepare for the next economic downturn as among risk scenarios. In doing so, it's important not only to take monetary policy action but enhance cooperation with the government" such as through fiscal policy, the minutes quoted a few board members as saying. At the Oct 30-31 meeting, the BoJ maintained its policy rates but it signaled further monetary easing going forward as the economy is set to expand at a slower pace amid weaker inflation outlook. The policy board also voted to keep its benchmark lending rate unchanged at -0.1 percent.
CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, appreciated against greenback and other major currencies. The Japanese yen traded at 109.39 per dollar after strengthening from levels around 109.5 in the previous session.
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