Japan Nikkei falls on stronger yen, Sino-U.S. trade war angst

The Japan share market declined for second straight session on Wednesday, 20 November 2019, as risk sentiment weighed down by falls on Wall Street overnight and a higher yen against the dollar with lingering uncertainty over the outlook for key trade talks between two major economies. Meanwhile, selloff fuelled further after Japanese merchandise trade data for October from the country's Ministry of Finance showed exports for the month falling 9.2% year-on-year. Around late afternoon, the 225-issue Nikkei Stock Average declined 182.50 points, or 0.8%, to 23,110.15, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange sank 9.42 points, or 0.56%, at 1,687.31.

Total 26 issues of the 33 industry category of Topix index dived into negative territory, with Marine Transportation, Oil & Coal Products, Mining, Glass & Ceramics Products, and Banks issues being notable losers, while Other Products, Air Transportation, and Securities & Commodities Futures issues were notable gainers.

 

Doubts about substantive progress on a partial trade deal with China ahead of a Dec. 15 deadline for the increase of import tariffs somewhat undermined sentiment. U.S. President Donald Trump on Tuesday threatened to escalate the trade war by raising tariffs on Chinese imports if no deal is reached with Beijing.

Market participants were largely opted sideline to seek clarity on the state of U.S.-China trade negotiations as a Dec. 15 deadline approaches. A tariff hike on Chinese exports to the U.S. is set to kick in on that date.

ECONOMIC NEWS: Japan Posts Trade Surplus At Y17.3 Billion In October--Japan merchandise trade surplus came in at 17.3 billion yen in October, the Ministry of Finance said on Wednesday, following the 124.8 billion yen deficit in September. Exports fell 9.2 percent on year, following the 5.2 percent decline in the previous month. Imports were down an annual 14.8 percent after dipping 1.5 percent a month earlier.

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 108.46 per dollar after touching lows around 108.8 yesterday.

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