Japanese Market Reverses Early Gains


The Japanese stock market slipped into negative territory after opening higher on Friday amid renewed trade war fears as U.S. President Donald Trump threatened $100 billion in additional tariffs on China. Investors also digested mixed local economic data.

In late-morning trades, the benchmark Nikkei 225 Index is declining 41.02 points or 0.19 percent to 21,604.40, after rising to a high of 21,727.24 in early trades.

In the tech space, Advantest is down more than 3 percent and Tokyo Electron is lower by 0.5 percent.

The major exporters are mixed despite a slightly weaker yen. Canon is declining more than 1 percent and Mitsubishi Electric is down almost 1 percent, while Sony is adding 0.3 percent and Panasonic is advancing 0.6 percent.

Among the major automakers, Toyota is adding 0.3 percent and Honda is rising 0.4 percent. In the banking sector, Mitsubishi UFJ Financial is lower by almost 1 percent, while Sumitomo Mitsui Financial is edging up less than 0.1 percent.

In the oil space, Inpex is rising more than 2 percent and Japan Petroleum Exploration is adding more than 1 percent.

Among the market's best performers, Daiichi Sankyo is rising more than 4 percent, while Seven & I Holdings and FamilyMart UNY Holdings are gaining almost 3 percent each.

On the flip side, Sumco Corp. is losing more than 4 percent, Takeda Pharmaceutical is losing almost 4 percent and Shin-Etsu Chemical is down almost 3 percent.

On the economic front, the Bank of Japan said that labor cash earnings in Japan were up 1.3 percent on year in February. That beat expectations for a gain of 0.5 percent following the upwardly revised 1.2 percent spike in January.

The Ministry of Internal Affairs and Communications said that the average of household spending in Japan was up 0.1 percent on year in February, coming in at 265,614 yen. That was shy of expectations for an increase of 0.3 percent following the 2.0 percent spike in January.

Japan will also see preliminary February results for its leading and coincident indexes today.

In the currency market, the U.S. dollar is trading in the 107 yen-range on Friday.

On Wall Street, stocks closed higher on Thursday for a third straight day, reflecting easing concerns about a potential trade war between the U.S. and China. Amid the focus on trade relations, the Commerce Department released a report showing the U.S. trade deficit widened by more than anticipated in the month of February.

The Dow jumped 240.92 points or 1 percent to 24,505.22, the Nasdaq rose 34.44 points or 0.5 percent to 7,076.55 and the S&P 500 climbed 18.15 points or 0.7 percent to 2,662.84.

The major European markets also showed strong moves to the upside on Thursday. While the U.K.'s FTSE 100 Index surged up by 2.4 percent, the French CAC 40 Index and the German DAX Index soared by 2.6 percent and 2.9 percent, respectively.

Crude oil futures rose slightly Thursday, staying in a narrow trading range amid conflicting reports about OPEC's suply quota plans. WTI crude for May delivery edged up $0.17 to $63.54 a barrel on the New York Mercantile Exchange.