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Japan shares ease off 13-month high, consolidate gains

Published 11/11/2019, 03:51
Updated 11/11/2019, 03:55
© Reuters.  Japan shares ease off 13-month high, consolidate gains

© Reuters. Japan shares ease off 13-month high, consolidate gains

TOKYO, Nov 11 (Reuters) - Japanese shares consolidated their

gains on Monday after a strong rally over the past few weeks on

hopes of a U.S.-China trade deal, but fresh violence in Hong

Kong dampened sentiment.

The Nikkei share average .N225 slipped 0.20% to 23,343.92,

easing from a 13-month high hit on Friday, while the broader

Topix .TOPX was flat at 1,702.77.

U.S. President Donald Trump said on Friday he had not agreed

to a rollback of U.S. tariffs sought by China, raising some

doubts on the chance of a deal, though he said on Saturday that

trade talks were moving along "very nicely". "Given the market has rallied without any corrections, it

needs some time for consolidation," said Takashi Hiroki, chief

strategist at Monex Securities.

"Japanese earnings results so far have not been great, with

about 70% of companies cutting estimates. But investors are

looking beyond the dips in the current year and to a likely

recovery after that," he said.

Asian share markets were rattled in early trade on news of

chaos in Hong Kong. Cable TV and Hong Kong media reported at

least one protester was wounded after police fired live rounds a

day after officers used tear gas to break up demonstrations that

are entering their sixth month. Honda Motor 7267.T rose 3.9% as the carmaker announced a

plan to buy back up to 1.9% of its own shares. That was more

than enough for investors to offset any disappointment from the

revision in its annual profit and global sales outlook to a

four-year low.

Regional lender Fukushima Bank 8562.T , trading at about a

quarter of its book value, rose 32% after public broadcaster NHK

reported it would form a capital and strategic tie-up with

Japanese internet brokerage giant SBI Holdings Inc 8473.T .

SBI Holdings dipped 0.5%.

Sushiro Global Holdings 3563.T jumped 7.9% to a record

high after the sushi restaurant chain operator announced solid

earnings and dividend hikes while security company Secom

9735.T also gained after brisk earning growth in

July-September.

On the other hand, diaper maker Unicharm 8113.T fell 7.6%

as its earnings growth fell short of market expectations.

Many chip-related shares, which have rallied strongly in

recent weeks, also gave in to profit-taking, with Advantest

6857.T falling 0.9% and TDK 6762.T shedding 0.6%.

Bridgestone 5108.T dipped 1.8% after the tyre maker cut

its annual profit outlook.

Amusement store operator Round One 4680.T dropped 13.7%

after it cut its annual profit estimate and posted a fall in

revenue in October.

(Editing by Jacqueline Wong)

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