Japan Nikkei jumps 0.6% on bargain hunting

Headline indices of the Japan share market rebounded on Friday, 07 December 2018, as investors shrugged off a weaker Wall Street finish overnight and found support from reports suggesting the U.S. Federal Reserve could consider a slower tempo of increasing interest rates than had been previously expected. Total 21 issues of Topix index inclined and remaining 12 issues declined, with shares in Retail Trade, Services, Land Transportation, Electric Power & Gas, and Precision Instrumentsissues being notable gainers, while Oil & Coal Products, Mining, Textiles & Apparels, and Nonferrous Metals issues were notable losers. In late afternoon trades, the 225-issue Nikkei index advanced 118.05 points, or 0.55%, at 21,619.67. The broader Topix index of all First Section issues on the Tokyo Stock Exchange rose 7.54 points, or 0.47%, to 1,618.14.

The bargain buying move came after sharp declines in Asian equities on Thursday led to a broader global sell-off after the arrest in Canada of Meng Wanzhou, who is also the daughter of Huawei founder Ren Zhengfei, fuelled worries over whether the trade war dente, struck by US President Donald Trump and China's President Xi Jinping just days earlier, will last.

ECONOMIC NEWS: Japan's average of household spending was down 0.3% on year in October, the Ministry of Internal Affairs and Communications said on Friday - coming in at 290,396 yen, following the 1.6% decline in September. The average of monthly income per household was down 2.9% on year at 515.729 yen.

CURRENCY NEWS: The Japanese yen, which can be a haven during market uncertainty, was little changed against dollar, as investors grapple with fresh prospects of deteriorating trade relations between the U.S. and China. The dollar was quoted at 112.74-75 yen compared with 112.61-71 yen in New York and 113.08-10 yen on Thursday in Tokyo. The euro, meanwhile, fetched 128.25-26 yen against 128.16-26 yen in New York and 128.05-09 yen in Thursday trade in Tokyo.

OFFSHORE MARKET: US stock market closed mixed on Thursday. The Dow Jones Industrial Average shed 79.40 points or 0.32% to 24,947.67. The S&P 500 slipped 4.11 points or 0.15% to 2,695.95 while the Nasdaq Composite recovered from its intraday losses to end the trading day 29.83 points or 0.42% higher at 7,188.26.

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