Japan Stocks end mixed

The Japan share market finished session mixed on Monday, 23 December 2019, as positive sentiment on US-China trade as countered by news that China's state-backed semiconductor fund plans to reduce holdings in some tech firms. At closing bell, the 225-issue Nikkei Stock Average rose 4.48 points, or 0.02%, to 23,821.11, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange dropped 3.65 points, or 0.21%, at 1,729.42.

Total 27 issues of the 33 industry category of Topix index dived into negative territory, with Mining, Pulp & Paper, Nonferrous Metals, Electric Power & Gas, and Iron & Steel issues being notable losers, while Pharmaceutical, Precision Instruments, and Services issues were notable gainers.

Investors took heart from President Trump's comments" that the bilateral talks with China were productive. US President Donald Trump on said Friday that he had a "very good talk" with his Chinese counterpart Xi Jinping on a partial resolution of the trade war. China on Monday said it will lower import tariffs on over 850 products from Jan.1, including frozen pork, as well as some information technology products from July 1 next year.

Meanwhile, China's state-backed semiconductor fund over the weekend announced plans to reduce holdings in some tech firms. The state fund planned to cut its stakes in Gigadevice Semiconductor, chipmaker Shenzhen Goodix Technology and Hunan Goke Microelectronics by about one%age point each.

Shares of export-linked companies were higher Sony rose 0.90% to 7,392 yen and Toyota gained 0.28% to 7,766 yen, with Nintendo up 0.13% at 43,260 yen.

ECONOMIC NEWS: Japan All Industry Activity Slips For First Time In 4 Months In October -- Japan's all industry activity index fell 4.3% month-on-month in October, after a 1.9% rise in September, figures from the Ministry of Economy, Trade and Industry showed on Monday. Among components, construction activity fell 0.3% monthly in October, following a 2.2% decline in the previous month. Industrial production dropped 4.5% in October, after a 1.7% rise in the preceding month. The tertiary industry activity declined 4.6% in October, following a 2.3% increase. On a yearly basis, the all industry activity index fell 3.3% in October, in contrast to a 3.4% gain in the prior month.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, depreciated against greenback and other major currencies. The Japanese yen traded at 109.43 against the dollar, a touch weaker from levels above 109.2 last week.

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