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Japan stocks retreat from strong run as trade doubts creep in

Published 30/10/2019, 03:27
© Reuters.  Japan stocks retreat from strong run as trade doubts creep in
TOPX
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2002
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4911
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6701
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6702
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5214
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6645
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By Stanley White

TOKYO, Oct 30 (Reuters) - Japan's benchmark Nikkei index

pulled back from the highest in more than a year on Wednesday as

conflicting signals from the U.S. government dampened optimism

for a preliminary trade agreement with China.

At 0147 GMT the Nikkei index was up 0.33% at 22,898.42, on

course for its biggest decline in three weeks.

It was the first downturn for Japanese stocks in eight

trading sessions, after a U.S. administration official told

Reuters on Tuesday that an interim U.S.-China trade agreement

might not be completed in time for signing at an Asia-Pacific

Economic Cooperation summit in Chile on Nov. 16-17. A delay does not mean the accord is falling apart, the

official said. However, the remarks conflicted with U.S.

President Donald Trump's comments on Monday that he expected to

sign a significant part of the trade deal with China ahead of

schedule. Trump's comments had lifted global stock markets and sent

the Nikkei to the highest in more than a year on Tuesday.

Investors also avoided taking big long positions before a

U.S. Federal Reserve policy decision later on Wednesday and a

Bank of Japan meeting on Thursday.

There were 148 decliners on the Nikkei index against 73

advancers on Wednesday.

The largest percentage losses in the index were electronics

manufacturer NEC Corp 6701.T , down 5.51%, followed by rival

electronics manufacturer Omron Corp 6645.T losing 4.28% and

Nippon Electric Glass Co Ltd 5214.T down 4.19%.

On the winning ledger, packaged food maker Nisshin Seifun

Group Inc 2002.T jumped 7.06%, electronics conglomerate

Fujitsu Ltd 6702.T rallied 5.63% and cosmetics maker Shiseido

Co Ltd 4911.T up by 3.22%.

The broader Topix index .TOPX added 0.04% to 1,663.36. It

earlier reached its highest level since Dec. 4, 2018.

The volume of shares traded on the Tokyo Stock Exchange's

main board .TOPX was 0.52 billion, compared to the average of

1.24 billion in the past 30 days.

(Editing by Shri Navaratnam)

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