Fannie Mae, Freddie Mac shares tumble after conservatorship comments
By Tomo Uetake
TOKYO, Nov 1 (Reuters) - Japan's benchmark Nikkei share
average fell on Friday as fresh concerns over the prospects for
a U.S.-China trade deal lifted the safe-haven yen against the
dollar, hitting exporters and other cyclical stocks.
The Nikkei average .N225 closed down 0.3% at 22,850.77,
after falling to as low as 22,705.60, its lowest since Oct. 24.
For the week, the index eked out a 0.2% gain, to mark its
fourth consecutive weekly rise. The broader Topix .TOPX ended
flat at 1,666.50.
Chinese officials doubt a comprehensive long-term trade deal
with Washington and U.S. President Donald Trump is possible,
Bloomberg reported on Thursday, citing unnamed sources.
The latest blow to hopes the world's two largest economies
will reach a deal to end their trade war comes despite comments
from Trump that the countries would soon announce a new site for
the signing of a "Phase One" deal, after Chile cancelled a
planned APEC summit set for mid-November.
The dollar hit a three-week low of 107.92 yen JPY=
overnight after the emergence of the renewed doubts on a
resolution of the trade war rattled the greenback and pushed
global stock markets lower. USD/ MKTS/GLOB
As a strong yen cuts Japanese manufacturers' profits made
abroad when repatriated, export-oriented companies and cyclical
sectors came under pressure on Friday.
Optical equipment maker Olympus 7733.T shed 2.8%, while
robot maker Fanuc 6954.T fell 1.9% and electronics maker
Toshiba 6502.T dropped 1.8%.
The mid-year earnings season is now in full swing in Japan.
Factory automation equipment maker Keyence 6861.T soared
8.2% to hit an all-time high, becoming the fourth largest firm
by market cap on the main board by overtaking Sony 6758.T and
SoftBank Group 9984.T on Friday.
Keyence announced a stock split plan and an annual dividend
forecast along with its April-September results after the market
close on Thursday. "Although the earnings results were not strong, the stock
split announcement came as a big positive surprise. The stock
will become more accessible for retail investors," said Yasuo
Sakuma, chief investment officer at Libra Investments.
Nintendo 7974.T jumped 7.5% to become the most traded
stocks on the Topix after the gaming company's operating profit
for the July-September quarter more than doubled, blowing past
analyst estimates, on strong demand for its Switch console.
Murata Manufacturing 6981.T climbed 3.2% after the
electronics component firm raised its full-year operating profit
forecast, citing a greater proportion of high-end products and
cost reduction. Sumitomo Corp 8053.T dived 5.6% after the trading house
lowered its full-year profit forecast and dividend forecast.