The Japan share market finished session mixed on Thursday, 16 January 2020, as investors digested the signing of a highly anticipated phase one trade agreement between the US and China. At closing bell, the 225-issue Nikkei Stock Average rose 25.20 points, or 0.11%, to 23,941.78, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange sank 1.81 points, or 0.1%, at 1,729.25.
Total 21 issues of the 33 industry category of Topix index dived into negative territory, with Securities & Commodities Futures, Mining, Metal Products, Iron & Steel, Rubber Products, and Banks issues being notable losers, while Pharmaceutical, Electric Power & Gas, and Oil & Coal Products issues were notable gainers.
The U. S. President Donald Trump and China's chief negotiator, Liu He, signed the Phase 1 deal before a group of corporate executives and reporters at the White House, marking a truce in the dispute over import tariff which has unsettled markets world-wide and slowed economic growth. The pact eases some sanctions on China. In return, Beijing has agreed to step up its purchases of U. S. farm products and other goods.
The text of the deal includes promises by the Chinese to increase their purchases of U. S. agricultural, manufacturing, and energy products, along with purchases of services, by more than $200 billion over the next two years, though it also states that the parties acknowledge that purchases will be made at market prices based on commercial considerations.
It also includes commitments by the Chinese to enforce intellectual property theft laws and a bilateral evaluation and dispute resolution arrangement that will encourage the U. S. and China to work jointly to resolves allegations of patent and copyright infringement or intellectual property theft.
ECONOMIC NEWS: Japan Core Machine Orders Jumps 18% On Month In November- Japan core machine orders surged a seasonally adjusted 18.0% on month in November, the Cabinet Office said on Thursday coming in at 942.7 billion yen, following the 6.0% slide in October. On a yearly basis, core machine orders climbed 5.3%, following the 6.1% fall in the previous month. Manufacturing orders rose 0.6% on month and lost 12.8% on year, while non-manufacturing orders surged 27.8% on month and 22.5% on year. Government orders dropped 8.7% on month and gained 0.2% on year.
Japan Producer Prices Down 0.1% On Month In December- Japan producer prices were down 0.1% on month in December, the Bank of Japan said on Thursday, slowing from 0.2% in November. On a yearly basis, producer prices were up 0.9%, up from 0.1% in the previous month. Export prices were up 0.2% on month and down 4.1% on year, the central bank said, after adding 0.2% on month and falling 5.9% on year in the previous month. Import prices gained 0.9% on month and dropped 6.8% on year after gaining 0.1% on month and tumbling 11.3% on year a month earlier.
CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, weakened against a basket of currencies after the United States and China ended some uncertainties for the world economy by signing a partial trade agreement. The yen's traded at 109.92 against the dollar, weakening from levels below 109.60 in the previous week.
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