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Japan Nikkei gains on firm offshore cues

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Headline indices of the share market were higher on Wednesday, 28 November 2018, as investors tracking an advance in Wall Street overnight and a cheaper yen, and hope that the and can work toward resolving their trade-related differences at the upcoming Summit. Total 16 of TSE33 issues inclined while remaining 17 issues declined, with shares in Marine Transportation, Pharmaceutical, Information & Communication, Services, and Machinery issues being notable gainers whereas Air Transportation, Transportation Equipment, and Iron & Steel issues were notable losers. In afternoon trades, the 225-issue Nikkei index rose 195.86 points, or 0.9%, at 22,148.26. The broader index of all First Section issues on the Stock Exchange was up 4.19 points, or 0.25%, to 1,648.35.

Global developments continued to influence trading in local market today. Federal Reserve backed gradual rate hikes ahead of Jerome Powell's speech on Wednesday. Clarida said risks to the U. S. are "less skewed to the downside," while St. Louis Fed was more cautious, telling that officials must monitor possible cracks in the U. S. recovery and that growth is going to slow in 2019 and 2020. The debate on the pace of monetary policy tightening in the U. S. next year has intensified this week ahead of Powell's speech that will be parsed for any hints on prospects for a pause in rate increases next year.

Japanese officials will be keeping a close eye on the summit in later this week when and Chinese are expected to meet and discuss trade issues.

The summit will be watched closely for how relations between both countries develop, in addition to further news surrounding Sino-US trade. China's main goal at the meeting is to get the to refrain from raising the tariffs in January. Trump is open to a deal with but is ready to impose more tariffs if the upcoming talks don't yield progress. has close economic ties with both countries and the ongoing tariff spat threatens to dampen Japan's export sector.

In Japan, SPPI and BoJ Core CPI both edged higher, but the yen was unable to capitalize on Tuesday. Last week, National Core CPI, which excludes volatile food prices, came in at 1.0% on an annualized basis, for a second straight month. The BoJ's target of around 2% remains elusive and could face further headwinds, as the slowdown in and the ongoing global trade war takes a bite out of the country's export sector. As well, could also hamper There is little reason to expect that will gather any upward momentum and some analysts are forecasting that inflation in 2018 will fall below the 1% level.

CURRENCY NEWS: depreciated in the upper-113 yen zone against greenback on Wednesday. The dollar was quoted at 113.77-78 yen compared with 113.72-82 yen in and 113.59-60 yen on Tuesday in The euro, meanwhile, fetched 128.54-58 yen against 128.49-59 yen in and 128.48-52 yen in Tuesday trade in

OFFSHORE MARKET NEWS: Wall Street stocks closed higher on Tuesday. The Dow Jones Industrial Average added 108.49 points, or 0.4%, to 24,748.73. The broad-based rose 8.72 points, or 0.3%, to 2,682.17, while the tech-rich Index inched up 0.85 points to 7,082.80.

The major European markets moved to the downside on Tuesday. The German DAX Index fell by 0.4%. The U. K.'s Index and the French Index dipped by 0.3% and 0.2%, respectively.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 28 2018. 08:59 IST
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