Headline indices of the Japan share market were modest higher on Tuesday, 28 May 2019, tracking gains made on European bourses overnight in the absence of major market-driving news on trade negotiations during the visit of President Donald Trump to Japan. Around late afternoon, the 225-issue Nikkei Stock Average advanced 0.4%, or 81.78 points, to 21,264.36, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 0.3%, or 4.67 points, at 1,551.67.
Total 21 issues of 33 subsectors of the Tokyo Stock Exchange inclined, with shares in Transportation Equipment, Precision Instruments, Electric Appliances, Rubber Products, and Insurance issues being notable gainers, whereas Mining, Fishery, Agriculture & Forestry, Oil & Coal Products, and Air Transportation issues were notable losers.
Market reaction to U.S. president Trump comments was muted. Trump was closing his state visit to Japan, which began Saturday. Trump pointed to the U.S.'s continuing “unbelievably large” trade imbalance with Japan, but he also said a trade deal was coming later this year, noting he expects it “sometime into the future.” The U.S. had a deficit of $56.8 billion in goods and services with Japan in 2018.
Markets in the United States were closed on Monday for the Memorial Day holiday. Meanwhile, the European stocks registered gains after EU elections. Pro-EU forces retained a majority in the 28-nation bloc's parliament despite the rise of nationalist parties in a region-wide vote. Britain's exchange remained closed for a bank holiday.
ECONOMIC NEWS: Japan Producer Prices Up 0.9% On Year In April -- Japan producer prices were up 0.9% on year in April, the Bank of Japan said on Tuesday, as compared to an increase of 1.1% on year in March. On a monthly basis, producer prices slipped 0.2% after advancing 0.7% a month earlier.
CURRENCY NEWS: The Japanese yen was tad softer in the mid-109 range against greenback in afternoon deals in Tokyo on Tuesday. The dollar's rise against the Japanese currency has been limited as Trump sought to pressure Japan to take measures to reduce its trade surplus with the world's largest economy. Trump said on Monday he expected the two countries to be announcing some things, probably in August, that will be very good for both countries on trade. Japan's Economy Minister Toshimitsu Motegi said on Tuesday the US President's comment probably reflected his hope for quick progress in negotiations. The greenback dipped 0.1% to 109.46 yen , 0.4% above a three-month low of 109.02 yen touched three weeks ago.