Japan Nikkei trades lower as investors opt for profits

Headline indices of the Japan share market were lower on Thursday, 01 November 2018, as investors took to selling to secure profits made following shares advancing over the past two days amid fresh concerns emerged over the prospects of the Chinese economy with a firmer yen against the dollar also weighing on the market. Total 17 issues of the TSE33 issues declined, while remaining 16 issues were in green, with shares in Information & Communication, Oil & Coal Products, Metal Products, Pharmaceutical, and Securities & Commodities Futures issues being notable losers, while Warehousing & Harbor Transportation Services, Insurance, Real Estate, Precision Instruments, and Electric Appliances issues were notable gainers. In late afternoon trades, the 225-issue Nikkei index declined 119.09 points, or 0.54%, at 21,801.37. The broader Topix index of all First Section issues on the Tokyo Stock Exchange lost 6.33 points, or 0.4%, to 1,639.79.

ECONOMIC NEWS: At the conclusion of a monetary policy meeting on Wednesday, the Bank of Japan downgraded inflation and economic growth forecasts through fiscal 2020, putting its 2% inflation target well out of reach for the foreseeable future. In the short term, the central bank also predicted that inflation for the current fiscal year would only rise by 0.9%, a downward revision of 0.2 points from its July forecast. But with little room left for further easing after years of monetary stimulus, the board voted 7 to 2 to keep monetary policy unchanged. Speaking at a news conference, BOJ Gov. Haruhiko Kuroda denied that the revisions represented a large shift in the bank's outlook, but said that latent global risks could take a bite out of domestic growth and price inflation.

 

CURRENCY NEWS: Japanese yen, widely viewed as a safe haven currency, appreciated in the upper 112 zone against greenback on Thursday, amid renewed concerns over rising U.S. interest rates and U.S.-China trade relations. The dollar was quoted at 112.85-86 yen compared with 112.91-113.01 yen in New York and 113.19-21 yen on Wednesday in Tokyo. The euro, meanwhile, fetched 127.67-68 yen against 127.74-84 yen in New York and 128.43-47 yen in Wednesday trade in Tokyo.

OFFSHORE MARKET: US stock market closed higher on Wednesday, with investors cautiously moving cash into beaten-down equities that are trading at their cheapest levels in more than two years even as headline risks related to U.S.-China trade rising interest rates and weakening corporate earnings continue to challenge sentiment. The Dow Jones Industrial Average jumped 241.12 points or 1% to 25,115.76, the Nasdaq soared 144.25 points or 2% to 7,305.90 and the S&P 500 surged up 29.11 points or 1.1% to 2,711.74

European markets ended higher on Wednesday. The French CAC 40 Index surged up by 2.3%. The German DAX Index and the U.K.'s FTSE 100 Index jumped 1.4% and 1.3%, respectively.

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