Japan Nikkei gains on upbeat US cues, Brexit deal

The Japan share markets inclined on Friday, 18 October 2019, on tracking gains on the Wall Street overnight on solid corporate earnings and optimism from a provisional deal made between Britain and the European Union (EU) over Britain's planned departure from the EU. Market gains were, however, limited after China released worse-than-expected gross domestic product figures as its protracted trade conflict with the U.S. continuing to take its toll on growth. Around afternoon trade, the 225-issue Nikkei Stock Average was up 44.44 points, or 0.2%, to 22,496.30, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 2.01 points, or 0.1%, at 1,622.15.

Total 17 issues of the 33 industry category of Topix index inclined into positive territory, with Glass & Ceramics Products, Oil & Coal Products, Textiles & Apparels, Iron & Steel, Machinery, and Metal Products issues being notable gainers, whereas Foods, Land Transportation, Rubber Products, and Information & Communication issues were notable losers.

 

Investors were encouraged after Britain and the European Union agreed to a severance deal, moving closer toward wrapping up three years of uncertainties after Britons voted to leave the bloc. The deal comes after years of divisive and frequently acrimonious discussions with the EU, including successive days of late-night talks this week.

At a news conference with Prime Minister Boris Johnson, European Commission President Jean-Claude Juncker said the deal meant there would be no need for a further delay to Britain's departure and negotiations on the future relationship between Britain and the EU would begin as soon as the deal was approved by the UK and European parliaments.

On the U.S.-China trade front, White House economic adviser Larry Kudlow's commented that he sees momentum to finalize the initial phase of a U.S.-China trade deal outlined last week, adding it may be signed at the APEC forum next month. Upbeat statements from Beijing and Washington fueled hopes that a phased agreement could ease the long-running U.S.-China trade war that has rattled markets for months.

China Gross domestic product (GDP) expanded 6% in third quarter ended September 2019, compared with 6.2% in the second quarter, official figures showed on Friday, as the country grapples with protracted trade war with the US and slowing domestic demand. The Chinese economy grew at 6.6% in 2018. However, the Industrial Production rose 5.8% year-on-year in September, after growth of 4.4% in August. Meanwhile, consumer spending, as represented by Retail Sales, rose 7.8% year-on-year in September.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, was marginally stronger on Friday. The Japanese yen traded at 108.62, a touch stronger than 108.67 seen earlier.

Powered by Capital Market - Live News