Nikkei cools after hitting 13-mth peak; earnings, Sino-U.S.trade talks in focus

Published 08/11/2019, 04:12
Updated 08/11/2019, 04:18
© Reuters.  Nikkei cools after hitting 13-mth peak; earnings, Sino-U.S.trade talks in focus

TOKYO, Nov 8 (Reuters) - Japan's benchmark stock index

rallied to a 13-month high on Friday before paring much of those

gains, as markets were buffeted by conflicting reports on how

much progress has been made in U.S.-China trade negotiations.

Earnings at Japan Inc. also swayed sentiment, with the

Nikkei average .N225 up 0.1% at 23,352.10, after climbing to

as high as 23,591.09 - the highest point since Oct. 10 of last

year. For the week, the index was on track to log a 2.2% gain

for what would be its fifth consecutive weekly rise.

The broader Topix .TOPX advanced 0.15% to 1,700.68, its

highest in more than a year.

The Chinese commerce ministry said on Thursday that the two

countries had agreed to cancel the tariffs in phases, which was

confirmed by a U.S. official, who spoke on condition of

anonymity. Yet, in an interview with Fox Business Network that

underlined the fluid nature of the talks, White House trade

adviser Peter Navarro dismissed suggestions of a roll-back in

tariffs.

"There is no agreement at this time to remove any of the

existing tariffs as a condition of the phase one deal," he said.

In Tokyo, there was still plenty for investors to focus on

as Japanese earnings moved into full swing.

Shares of companies with solid earnings spiked. Terumo

4543.T rose 13.4% to record highs after the medical equipment

maker posted strong earnings in the three months to September.

Isetan Mitsukoshi 3099.T jumped 11.0% after the department

store operator posted upbeat quarterly earnings and announced

share buyback.

Kirin Holdings 2503.T gained 9.2% after the beer and

beverage maker announce share buy-back totalling up to 6.8% of

its shares.

Toyota 7203.T rose 1.8% to hit four-year highs, helped by

its release of a share buyback plan and estimates-beating

quarterly results. On the other hand, Shiseido 4911.T shed 7.5% after the

cosmetics maker cut its outlook on poor sales in South Korea and

Hong Kong.

Rakuten 4755.T dropped 4.2% as its quarterly operating

profit was almost wiped out in the three months ended September

as investment in its e-commerce and mobile units weighed on

profits, with the value of its bet on ride-hailing firm Lyft

also sliding further. Mercari 4385.T lost 17.3% after the internet shopping

service operator's earnings underwhelmed investors.

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