Japan Stocks mixed on trade deal jitters

Headline indices of the Japan share market were tad higher after recouping lost ground on Tuesday, 12 November 2019, as risk sentiments were subdued amid lingering concerns over a US-China trade deal and fresh unrest in Hong Kong. Around late afternoon, the 225-issue Nikkei Stock Average advanced 87.73 points, or 0.4%, to 23,419.57, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange grew 0.40 point, or 0.02%, at 1,704.43.

Total 18 issues of the 33 industry category of Topix index inclined into positive territory, with Construction, Oil & Coal Products, Pulp & Paper, Retail Trade, and Marine Transportation issues being notable gainers, while Nonferrous Metals, Rubber Products, Electric Power & Gas, Warehousing & Harbor Transportation Services, and Precision Instruments issues were notable losers.

Investors are watching for developments on U.S.-China trade, amid uncertainty over what has been agreed between the two economic powerhouses. The U.S. President Donald Trump said over the weekend that reports about U.S. willingness to lift tariffs were "incorrect," only two days after a Chinese official said both sides agreed to rollbacks if talks progress. The U.S. President Donald Trump comments worsened sentiment already hit by a similar statement from White House trade adviser Peter Navarro that the tariff rollback plan faced fierce internal opposition at the White House. That ended days of optimism as officials said tariffs would be rolled back and the deal would be signed soon.

Both sides are working to sign what the White House has described as a phase one trade deal. Officials from both countries said on Thursday that China and the United States had agreed to roll back tariffs already in place on each others' goods in a "phase one" trade deal to end a damaging trade war, but the idea has been met with stiff opposition within some quarters of the Trump administration.

The next hints on progress in negotiations with China may come later on Tuesday, when Trump is scheduled to deliver a speech on trade and economic policy at the Economic Club of New York.

Meanwhile, market movements in Hong Kong continue to be monitored, following an escalation in violence amid unrest in the embattled city. A protester was left in critical condition after being shot by police Monday morning local time. Separately, another man was also in critical condition after he was doused with what police described as flammable liquid and set on fire.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, appreciated against greenback. The Japanese yen traded at 109.14 after strengthening from levels around 109.2 yesterday.

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