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Japan Stocks mixed as trade deal optimism counters profit booking

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Headline indices of the Japan share market were mixed on Wednesday, 06 November 2019, as positivity from cheaper yen, better-than-expected US economic data, and optimism over ongoing international trade talks was offset by profit booking on stocks gains recently. Around late afternoon, the 225-issue Nikkei Stock Average added 20.59 points, or 0.09%, to 23272.58, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 4.07 points, or 0.24%, at 1,690.09.

Total 18 issues of the 33 industry category of Topix index inclined into positive territory, with Pulp & Paper, Nonferrous Metals, Iron & Steel, Marine Transportation, Mining, and Rubber Products issues being notable gainers, while Information & Communication, Foods, Precision Instruments, and Oil & Coal Products issues were notable losers..

Optimism over negotiations between the U. S. and China remained intact Wednesday, after helping to drive up benchmark indexes on Tuesday.

Investors were optimistic that, as part of phase one of trade talks between the United States and China, the US will suspend tariffs on $156 billion of Chinese imports scheduled to take effect on December 15 and possibly roll back the September 1 tariffs on about $125 billion in goods.

Since the United States and China agreed to a "phase one" trade deal in October, the progress seemed to have stalled as it remains unclear when and where the two parties will sign the agreement. Still, there is good news that the United States is assessing current tariffs on Chinese imports as the parties work to finalize the "phase one" trade deal, according to officials. No decisions have been made beyond the previously announced tariff relief.

CURRENCY NEWS: The Japanese yen, often viewed as a safe-haven currency in times of economic uncertainty, depreciated against greenback. The Japanese yen traded at 109.05 against the dollar after weakening from levels below 109.0 yesterday

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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 06 2019. 10:16 IST
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