Japan Market edges up

Headline indices of the Japan share market edged up on Wednesday, 22 May 2019, on tracking overnight gains in the Wall Street stocks. Meanwhile the country's better-than-expected machinery orders aided sentiment. However, market gains were marginal amid lingering trade tensions between the U.S. and China after reports that the Trump administration is considering blacklisting Hikvison - a major Chinese surveillance technology firm. Around late afternoon, the 225-issue Nikkei Stock Average rose 0.2%, or 41.48 points, to 21,313.93, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange edged down 0.05%, or 0.70 point, at 1,549.60.

Total 20 issues of 33 subsectors of the Tokyo Stock Exchange inclined, with shares in Nonferrous Metals, Information & Communication, Fishery, Agriculture & Forestry, Chemicals, Machinery, and Rubber Products issues being notable gainers, whereas Land Transportation, Marine Transportation, Air Transportation, and Oil & Coal Products were notable losers.

Local market lacks a clear directional this Wednesday morning, despite the overnight gains in the US stocks, possibly due to reports that the Trump administration is considering blacklisting Hikvison - a major Chinese surveillance technology firm. That could only lead to further escalation of trade tensions between the world's two biggest economies.

President Xi Jinping called for a new Long March in a speech at Jiangxi, where Mao Zedong began his ascent to power during a series of retreats by the Red Army to evade pursuing Nationalist forces, as per reports. Investors took it as a sign that China is preparing for a protracted trade war, with no clear path to a trade deal in the near future.

Shares of technology companies rose tracking their U.S. counterparts. The moves came after the U.S. temporarily backed off on restrictions on Chinese telecommunications giant Huawei. The Commerce Department said Monday night it would allow Huawei to purchase American-made goods in order to maintain existing networks and provide software updates to existing Huawei handsets until Aug. 19. Advantest Corp rose 1.6%, Murata Manufacturing added 1.6%, while Sumco Corp advanced 0.8%.

ECONOMIC NEWS: Japan Core Machine Orders Climb 3.8% On Month In March -- Japan total value of core machine orders was up a seasonally adjusted 3.8% on month in March, the Cabinet Office said on Wednesday, coming in at 868.8 billion yen, following the 1.8% increase in February. On a yearly basis, core machine orders sank 0.7% following the 5.5% contraction in the previous month. The total value of machinery orders received by 280 manufacturers operating in Japan fell 4.3% on month and 1.0% on year in March.

Japan Posts Y60.402 Billion Trade Surplus in April Japan trade surplus came in at 60.402 billion yen in April, the Ministry of Finance said on Wednesday, down 90.3% on year and down from 528.5 billion yen in March. Exports sank 2.4% on year to 6.658 trillion yen, after sliding 2.4% in the previous month. Imports climbed an annual 6.4% to 6.598 trillion yen, up from 1.2% a month earlier.

CURRENCY NEWS: The Japanese yen changed hands in the mid-110 range against greenback in afternoon deals in Tokyo on Wednesday, largely in line with its levels in New York overnight. The dollar was quoted at 110.55-56 yen, compared with 110.43-53 yen in New York and 110.12-13 yen on Tuesday in Tokyo.

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