Japan Stocks mixed on trade, no-deal Brexit concerns

The Japan share market closed marginally lower after seesawing between gains and losses on Thursday, 29 August 2019, as investors remained cautious about ongoing trade issues and concerns over the possibility of Britain leaving the European Union without a deal. At closing bell, the 225-issue Nikkei Stock Average declined 20.66 points, or 0.1%, to 20,458.76, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange added 0.26 point, or 0.02%, at 1,490.09.

Total 21 sectors out of 33 of the sectors of Topix index inclined, with Fishery, Agriculture & Forestry, Oil & Coal Products, Iron & Steel, Glass & Ceramics Products, and Construction issues being notable gainers, while Services, Rubber Products, Precision Instruments Information & Communication, and Securities & Commodities Futures issues were notable losers.

 

In a dramatic move on Wednesday, Britain's new Prime Minister Boris Johnson set in motion the suspension of the UK Parliament - which means MPs have much less time to debate Brexit, the process of the UK leaving the European Union. Parliament is to be suspended for five weeks ahead of 31 October, the day the UK is due to leave the EU.

The UK was originally scheduled to leave the EU on 29 March. After Parliament rejected the deal negotiated with the EU three times, that deadline was extended. Departure day is now 31 October. Mr Johnson, who was one of the key figures in the Leave campaign, has promised to complete Brexit "do or die" - with or without a deal. However, most opposition members of Parliament (MPs) and many from the governing Conservative Party don't want to leave the EU without a deal. They fear it would damage the British economy, putting up prices and limiting access to the UK's biggest market.

Investors were cautiously awaiting for clarity on when the next steps in the U.S. and China trade negotiations might happen after President Donald Trump's recent pronouncements on trade and as optimism for a resolution becomes more difficult to sustain. Treasury Secretary Steven Mnuchin said U.S. trade officials expect Chinese negotiators to visit Washington, but wouldn't say whether a previously planned September meeting would take place, while White House trade adviser Peter Navarro played down a quick resolution..

CURRENCY NEWS: The U.S. dollar changed hands in the upper 105 yen zone in Tokyo on Thursday. The Japanese yen traded at 105.91 against the dollar after seeing lows around 106.2 yesterday.

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