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Japanese stocks retreat as firmer yen weighs on exporters

Published 19/11/2019, 08:20
© Reuters.  Japanese stocks retreat as firmer yen weighs on exporters
USD/JPY
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JP225
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TOPX
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4188
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6502
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3436
-
6857
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6954
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9984
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4508
-
6146
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IPHAM.T
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7203
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By Tomo Uetake

TOKYO, Nov 19 (Reuters) - Japanese shares slipped on

Tuesday, with exporters pressured by a firmer yen against the

dollar, while investors awaited clarity on the progress of

negotiations to end the trade war between the United States and

China.

The benchmark Nikkei share average .N225 slid 0.5% to

23,292.65 and the broader Topix .TOPX fell 0.2% at 1,696.73.

Overnight, Wall Street's main indexes were mostly flat,

looking for direction on trade, though they ended the day

inching up to record closing levels. .N/C

CNBC reported on Monday that the mood in Beijing was

pessimistic about the prospects of sealing a phase-one deal with

Washington. On the other hand, a new extension allowing U.S. companies

to continue doing business with Chinese telecoms giant Huawei

Technologies Co Ltd HWT.UL suggested something of an olive

branch. Still, neither factor shed much light on progress in

U.S.-China negotiations, and lacklustre trading so far this week

suggests optimism that a resolution is near is beginning to run

out of steam.

The Japanese yen firmed as much as 0.2% to 108.47 JPY=

versus the dollar in Asian trade on Tuesday, weighing on

exporters as a strong local currency hurts corporate profits

when they are repatriated.

Export-oriented Toyota Motor Corp 7203.T declined 1.1%,

Fanuc Corp 6954.T dropped 1.5% and Toshiba Corp 6502.T shed

3.0%.

Semiconductor-related also shares retreated, with SUMCO Corp

3436.T down 3.1%, Disco Corp 6146.T falling 2.2% and

Advantest Corp 6857.T dropping 1.6%.

Meanwhile the Nikkei's heavyweight SoftBank Group Corp

9984.T fell 1.3% after Reuters reported that the New York

State Attorney General is investigating WeWork, citing sources.

SoftBank Group is the majority owner of the office-sharing

startup.

Elsewhere, Mitsubishi Chemical Holdings Corp 4188.T slid

3.4% after Japan's largest chemical maker said it will pay 491.8

billion yen ($4.5 billion) to make Mitsubishi Tanabe Pharma Corp

a fully-owned subsidiary.

Mitsubishi Tanabe Pharma 4508.T shares surged 22%, by

their daily limit of 300 yen, helping the pharmaceutical sector

.IPHAM.T to gain 1.7%, becoming the best-performing sector

subindex on the main board.

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