TOKYO, Dec 12 (Reuters) - Japanese shares were mostly flat
on Thursday ahead of a deadline on a new round of U.S. tariffs
on Chinese imports due this weekend while semiconductor firms
tracked gains in their counterparts on Wall Street.
The Nikkei share average .N225 ended 0.14% higher at
23,424.81. The benchmark index has been in a holding pattern
since early November, hovering below 23,600 — increasingly seen
as a major resistance.
The broader Topix .TOPX shed 0.12% to 1,712.83, dented by
a fall of 0.5% in small-cap shares .TOPXS .
U.S. President Donald Trump is expected to meet with top
trade advisers on Thursday to discuss the planned Dec. 15
tariffs on some $160 billion in Chinese goods, three sources
familiar with the plans said. Although the market has been underpinned by some hopes of a
Sino-U.S. trade deal, investors worry that negotiations could
fall apart if the tariffs kick in this weekend.
"It will be a huge shock for the market if the tariffs are
introduced," said Shingo Ide, chief strategist at NLI Research
Institute.
"Exporters shares have already risen considerably this
quarter on expectations that their earnings will grow in double
digits (percent) next financial year," he added.
The market received some support earlier in the session from
the U.S. Federal Reserve's relatively dovish stance. The central
bank held interest rates steady and signalled borrowing costs
would not change anytime soon. Semiconductor-related shares were the brightest spot
following their peers' strong showing on Wall Street. The
Philadelphia semiconductor index .SOX rose 2.2% to a record
high on Wednesday.
The top three gainers on the Nikkei were all chip-related
shares. Tokyo Electron 8035.T rose 4.9%, Sumco 3436.T gained
3.3% and Advantest 6857.T added 2.8%.
Other strong gainers in the sector included Disco 6146.T
and Shin-etsu Chemical 4063.T , which rose 4.7% and 1.8%,
respectively.
Machinery makers .IMCHN.T gained 0.5% despite weak reading
on Japan's machinery orders data.
Hitachi Construction 6305.T rose 0.2% and hit a one-year
high.
Core machinery orders fell 6% in October, the fourth
consecutive month of decline, way below expectations of a small
gain, raising concerns capital spending may be losing momentum.
Otsuka Kagu 8186.T jumped 30.9% after a media report said
electronic appliance retailer Yamada Denki 9831.T will pay 4
billion yen to take over the troubled furniture store chain
operator as a subsidiary. Yamada Denki fell 1.6%.
Jasdaq index of start-up firms .NOTC dipped 0.1% after 14
consecutive winning sessions.