November 1, 2019 / 3:20 AM / 16 days ago

Nikkei retreats to 1-week low as trade deal doubts emerge; Nintendo jumps

TOKYO, Nov 1 (Reuters) - Japan’s benchmark Nikkei share average fell to a one-week low 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 were down 0.4% to 22,833.23 at the midday break, after falling to as low as 22,705.60, its lowest level since Oct. 24. For the week, the average was on track to eke out a 0.1% gain, to mark its fourth consecutive weekly rise. The broader Topix shed 0.2% to 1,664.47.

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.

The 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.

The dollar hit a three-week low of 107.92 yen overnight after the emergence of the renewed doubts on a resolution of the trade war rattled the greenback and pushed global stock markets lower.

As a strong yen cuts Japanese manufacturers’ profits made abroad when repatriated, export-oriented companies and cyclical sectors came under pressure on Friday.

Automaker Subaru dropped 1.0%, while electronic device maker Kyocera and optical equipment maker Olympus shed 3.0% and 2.9%, respectively.

As midyear earnings season enters full swing, Nintendo jumped 5.9% 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.

Keyence soared 8.5% after the factory automation equipment maker announced a stock split plan and an annual dividend forecast along with its April-September results. (Reporting by Tomo Uetake; Editing by Tom Hogue)

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