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Nikkei snaps 4-day winning streak after Trump move backing Hong Kong protesters

Published 28/11/2019, 07:36
© Reuters.  Nikkei snaps 4-day winning streak after Trump move backing Hong Kong protesters
JP225
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TOPX
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6501
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9020
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6971
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* Japanese shares dip after Trump signs Hong Kong bills

* Market sentiment still robust on hopes of global recovery

* Small-, mid-cap shares outperform

By Hideyuki Sano

TOKYO, Nov 28 (Reuters) - Japanese shares dipped on Thursday

after U.S. President Donald Trump signed into law congressional

legislation backing protesters in Hong Kong, sparking fears of a

fresh confrontation with Beijing that could derail their trade

talks.

The Nikkei share average .N225 fell 0.12% to 23,409.14,

snapping a four-day winning streak while the broader Topix

.TOPX lost 0.17% to 1,708.06, with decliners outnumbering

gainers by 1,416 to 628.

China warned the United States on Thursday it would take

"firm counter measures" in response to U.S. legislation backing

anti-government protesters in Hong Kong, saying attempts to

interfere in the Chinese-ruled city were doomed to fail.

"In the near term, people are watching how China will react

to Trump's move," said Masahiro Ayukai, senior investment

strategist at Mitsubishi UFJ Morgan Stanley Securities.

"But there is little change in the view that the global

economic sentiment is bottoming out," he added.

Against such a backdrop, some selected technology-related

shares gained, with Hitachi 6501.T rising 1.8% to hit a 1

1/2-year high.

Kyocera 6971.T gained 1.9% to its best level since early

2018 while Fujitsu 6702.T rose 1.1% to a 10-year high.

Panasonic 6752.T rose 2.8% after the Nikkei business daily

reported that the company plans to pull out from its small,

money-losing semiconductor business. On the other hand, some defensive shares lost their edge,

with Central Japan Railway 9022.T falling 1.6% and East Japan

Railway 9020.T down 1.1%.

Japan Display 6751.T dropped 4.2% after the struggling

panel maker said on Wednesday it would review its past earnings

after a former accounting executive notified the company of a

past accounting fraud which he said was directed by former top

management. Turnover dropped to 1.598 trillion yen, about 25 below the

average over the past year due to U.S. Thanksgiving holiday.

With many foreign players away, small- to mid-cap shares -

which are popular with Japanese retail investors - fared better.

The Tokyo Stock Exchange's second-section index .TSI2 rose

1.7% to hit near one-year high and the Mothers Index of start-up

firms .MTHR ticking up 0.2%.

Trump approves legislation backing Hong Kong protesters

supplier Japan Display to review past earnings after fraud

warning warns U.S. of consequences for HK law as police enter

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