Japan Stocks end softer

Headline indices of the Japan share market ended softer on Thursday, 28 June 2018, as negativity from soft Wall Street overnight and concerns about global trade war between the U.S. and major countries offset positivity of halt in yen appreciation and Trump administration softens trade stance toward China. Among TSE33 issues, 22 issues were in negative terrain while remaining 11 were landed in green. Shares Air Transportation, Other Financial Business, Pharmaceutical, Insurance, Information & Communication, and Retail Trade issues were notable losers, while Mining, Transportation Equipment, Metal Products, Rubber Products, and Nonferrous Metals were notable gainers. At the close of trade, the 225-issue Nikkei average lost 1.38 points, or 0.01%, to 22,270.39. The Topix index of all first-section issues was down 4.45 points, or 0.26%, at 1,727.

The Trump administration de-escalated a confrontation with China on Wednesday, dropping plans to impose strict limits on Chinese investment in U.S. technology companies and instead urging Congress to strengthen existing laws that apply to all foreign countries. The administration's more conciliatory stance raised at least the possibility that the two sides could work toward a negotiated end to the punishing tariffs that they're set to impose on each other's goods beginning July 6. On July 6, the United States has said it will impose tariffs on $34 billion in Chinese imports a sum that could reach $450 billion if Beijing refused to yield and retaliated with its own sanctions. In response, China is prepared the same day to slap tariffs on billions in U.S. exports, including soybeans a direct threat to Trump supporters in America's heartland.

Showa Shell fell on profit booking after soaring to a record high the previous day on report that Idemitsu Kosan's founding family would drop its opposition to plans for a merger with its Japanese rival.

ECONOMIC NEWS: Japan Retail Sales Plunges In May -- Retails sales in Japan fell sharply in May, signalling weak consumer spending, figures from the Ministry of Economy, Trade and Industry showed Thursday. Retail sales dropped 1.7% month-on-month in May, reversing a 1.3% rise in April. Sales were expected to decline moderately by 0.8%. On a yearly basis, retail sales growth eased to 0.6% to 1.5% in the previous month.

CURRENCY NEWS: The U.S. dollar changed hands in the lower 110 yen zone on Thursday, largely in line with its levels in New York overnight. The dollar was quoted at 110.21-22 yen compared with 110.21-31 yen in New York and 109.72-73 yen at 5:00 on Wednesday in Tokyo.

OFFSHORE MARKET: U.S. stocks closed lower on Wall Street Wednesday, 27 June 2018, on reports that the Trump administration wasn't softening its stance on imposing limits on Chinese investments. The Dow Jones industrials fell 165 points or 0.7% to 24,117 and the S&P 500 slid 23 points or 0.9% to 2,699. The Nasdaq composite lost 116 points to 7,445, its lowest close since May 31.

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