Nikkei pauses near 1-year peak, Softbank Group stumbles

  • Reuters
  • Stock Market News
Nikkei pauses near 1-year peak, Softbank Group stumbles
Credit: © Reuters.

TOKYO, Nov 7 (Reuters) - Japanese shares took a breather on Thursday on worries over possibly delays in a first-phase Sino-U.S. trade deal while Softbank Group slid on its first quarterly loss in 14 years.

The Nikkei share average .N225 was flat at 23,306.99, not far off Wednesday's 13-month intraday high of 23,352.56 while the broader Topix .TOPX gained 0.1% to 1,696.11.

A meeting between U.S. President Donald Trump and Chinese President Xi Jinping to sign an interim trade deal could be delayed until December as discussions continue over terms and venue, Reuters reported on Wednesday. report prompted investors to take stock after a strong rally since mid-October on expectations that Washington and Beijing will sign a "phase one" deal to suspend their disputes on trade.

In the past month, the Nikkei had rallied about 8% and Topix almost 7%.

Those strong gains came even as Japanese corporate earnings have yet to show a broad-based recovery.

A Reuters Tankan poll on Thursday showed Japanese manufacturers turned the most pessimistic in 6-1/2 years in November and the service-sector mood fell to three-year lows, hurt by the global slowdown, natural disasters and a sales tax hike at home. Group 9984.T fell 3.3% after it posted an operating loss of 704 billion yen ($6.5 billion) in the July-September quarter due to a writedown on its investment through its giant Vision Fund on WeWork and Uber Technologies UBER.N . Motors 7211.T fell 6.3% after the carmaker slashed its full-year profit outlook by 67% as it expects sluggish demand in North America and China to continue. electrode maker Tokai Carbon 5301.T lost 6.6% on disappointing earnings due to slowing demand while rival manufacturer Showa Denko 4004.T also dropped 2.4% following its earnings.

On the other hand, Olympus 7733.T soared as much as 16.5% to a record high after its quarterly earnings beat market estimates, helped by strong sales of endoscopes.

Medical equipment maker Sysmex 6869.T gained 8.0% and discount store operator Pan Pacific International 7532.T jumped 6.8% on brisk earnings. (Editing by Jacqueline Wong)

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