Nikkei slips on trade deal worry, firmer yen; Keyence, Nintendo shine

  • Reuters
  • Stock Market News
Nikkei slips on trade deal worry, firmer yen; Keyence, Nintendo shine
Credit: © Reuters.

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. 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. 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. 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. 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. Corp 8053.T dived 5.6% after the trading house lowered its full-year profit forecast and dividend forecast.

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