BofA warns Fed risks policy mistake with early rate cuts
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.