Japan Nikkei gains on upbeat U.S. shares

The Japan share market finished session higher on Friday, 06 December 2019, as investors continued chasing recently battered stocks on tracking positive lead from Wall Street overnight, supported by continued hopes for a US-China trade deal before a closely watched date of Dec. 15 when additional tariffs on Chinese exports to the U.S. go into effect. Market gains were, however, capped amid weaker than expected household spending data and on caution about the future outlook for the global economy. At closing bell, the 225-issue Nikkei Stock Average advanced 65.41 points, or 0.28%, to 23,365.50, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange grew 1 points, or 0.06%, at 1,712.38.

Total 22 issues of the 33 industry category of Topix index inclined into positive territory, with Securities & Commodities Futures, Construction, Iron & Steel, Glass & Ceramics Products, and Textiles & Apparels issues being notable gainers, while Rubber Products, Fishery, Agriculture & Forestry, Mining, and Pulp & Paper issues were notable losers.

The market risk-on mood was fuelled by continued hopes for a US-China trade deal. US and Chinese negotiators are working to finalise a preliminary trade deal announced in October that would block new tariffs expected to take effect before a closely watched date of Dec. 15 when additional tariffs on Chinese exports to the U.S. go into effect. Trump said on Thursday that U.S.-China trade talks are "moving right along," striking an upbeat tone despite a lack of agreement over whether existing tariffs should be dropped as part of a deal. Investors were hoping that the two sides will reach a compromise to at least avoid their worst fears - that the United States will go ahead with its final batch of tariffs on about US$156 billion of Chinese exports. Uncertainties over a deal have pushed some investors to the sidelines in recent sessions, while nervousness ahead of the release of U.S. payrolls data later in the day

ECONOMIC NEWS: Household spending falls 5.1% in October-- Household spending dropped 5.1 percent in October from a year earlier, the Ministry of Internal Affairs and Communications data showed on Friday. That marked a sharp reversal from the 9.5 percent jump in September, the fastest growth on record as consumers rushed to buy goods before the Oct. 1 sales tax hike from 8 percent to 10 percent.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, little changed against greenback. The Japanese yen traded at 108.67 per dollar after strengthening from levels above 108.8 yesterday.

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