Japan Nikkei rises on softer yen

Japan share market inclined on last trading session of the week, Friday, 24 August 2018, thanks to yen depreciation to upper 111 level against greenback. However, market gain was limited due to growing trade war concerns after U.S.-China trade negotiations produced no breakthrough and on caution ahead of an address from Federal Reserve chairman Jerome Powell. Total 25 issues out of 33 TSE index inclined, while remaining 8 issues were lower, with shares of Pulp & Paper, Services, Oil & Coal Products, Pharmaceutical, Information & Communication, and Mining issues being notable gainers, while Iron & Steel, Nonferrous Metals, Machinery, and Air Transportation issues were notable lowers. Around afternoon trade, the benchmark Nikkei 225 index rose 0.45%, or 99.93 points, to 22,510.75. The broader Topix index of all First Section issues on the Tokyo Stock Exchange climbed up 0.35%, or 6.01 points, to 1,704.23.

US and Chinese officials ended two days of talks on Thursday with no major breakthrough. Meanwhile their trade war escalated with activation of another round of duelling tariffs on US$16 billion worth of each country's goods.

 

U.S. Fed Chair Jerome Powell and other central bankers will meet at Jackson Hole later on Friday to discuss the root causes of stubbornly low inflation, slow wage growth and tepid productivity gains. U.S. President Donald Trump reiterated his displeasure with the Fed's rate hikes earlier this week and investors waited to see whether Powell would respond to such criticism.

OFFSHORE MARKET NEWS, US stock market closed lower on Thursday, as traders were reluctant to make significant moves amid renewed concerns after the U.S. imposed tariffs on $16 billion worth of Chinese goods, leading to retaliation by the Asian nation. The Dow Jones Industrial Average declined 76.62 points or 0.30% to finish at 25,656.98, the NASDAQ lost 10.64 points of 0.13% to 7,878.46 and the S&P 500 fell 4.84 points or 0.17% to 2,856.98.

The major European stock markets ended down on Thursday, after the US and China applied tariffs on each other's imports. The pan-European STOXX600 index eased 0.2%. The German DAX index and the UK FTSE index both also fell by 0.2%.

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