Japan Nikkei falls on profit booking

Headline indices of the Japan share market retreated on Wednesday, 16 January 2019, giving back a portion of Tuesday's wide gains, as investors' elected to book profit after benchmark indices hitting nearly a one-month high yesterday. Meanwhile, profit taking fuelled on news of a crushing Brexit defeat in parliament for UK Prime Minister Theresa May. Total 22 out of 33 subindexes of the Tokyo Stock Exchange's were in negative territory, with shares in Oil & Coal Products, Mining, Pulp & Paper, Securities & Commodities Futures, Nonferrous Metals, and Iron & Steel issues being notable losers, while Electric Power & Gas, Foods, Fishery, Agriculture & Forestry, and Information & Communication issues were notable gainers. At closing bell, the 225-issue Nikkei index declined 112.54 points, or 0.55%, at 20,442.75. The broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 4.95 points, or 0.32%, to 1,537.77.

ECONOMIC NEWS: Japan core machine orders were roughly flat on month in November, the Cabinet Office said on Wednesday, down sharply from 7.6 percent in October. On a yearly basis, core machine orders added 0.8 percent, exceeding expectations for 0.2 percent following the 4.5 percent increase in the previous month.

 

CURRENCY NEWS: The Japanese yen was in the upper 108 yen zone against dollar on Wednesday largely in line with it levels in New York overnight. The dollar was quoted at 108.67-68 yen compared with 108.64-74 yen in New York and 108.64-66 yen on Tuesday in Tokyo. The euro, meanwhile, fetched 124.03-04 yen against 123.97-124.07 yen in New York and 124.61-65 yen in late Tuesday afternoon trade in Tokyo.

OFFSHORE MARKET NEWS: U.S. stocks rose on Tuesday as technology and internet stocks gained on Netflix Inc's plans to raise fees for U.S. subscribers and hopes of more stimulus for China's slowing economy after Chinese authorities indicated they will launch an economic stimulus package to help it through its current rough patch, but those gains were handed back after British MPs rejected Theresa May's Brexit deal by 432 votes to 202, adding more uncertainty about the UK's exit from the European Union. The Dow Jones Industrial Average rose 132.01 points, or 0.55%, to 24,041.85, the S&P 500 gained 24.87 points, or 0.96%, to 2,607.48 and the Nasdaq Composite added 107.07 points, or 1.55%, to 7,012.99.

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