TOKYO, Nov 11 (Reuters) - Japanese shares consolidated their gains on Monday after a strong rally over the past few weeks on hopes of a U.S.-China trade deal, but fresh violence in Hong Kong dampened sentiment.
U.S. President Donald Trump said on Friday he had not agreed to a rollback of U.S. tariffs sought by China, raising some doubts on the chance of a deal, though he said on Saturday that trade talks were moving along "very nicely". the market has rallied without any corrections, it needs some time for consolidation," said Takashi Hiroki, chief strategist at Monex Securities.
"Japanese earnings results so far have not been great, with about 70% of companies cutting estimates. But investors are looking beyond the dips in the current year and to a likely recovery after that," he said.
Asian share markets were rattled in early trade on news of chaos in Hong Kong. Cable TV and Hong Kong media reported at least one protester was wounded after police fired live rounds a day after officers used tear gas to break up demonstrations that are entering their sixth month. Motor 7267.T rose 3.9% as the carmaker announced a plan to buy back up to 1.9% of its own shares. That was more than enough for investors to offset any disappointment from the revision in its annual profit and global sales outlook to a four-year low.
Regional lender Fukushima Bank 8562.T , trading at about a quarter of its book value, rose 32% after public broadcaster NHK reported it would form a capital and strategic tie-up with Japanese internet brokerage giant SBI Holdings Inc 8473.T .
SBI Holdings dipped 0.5%.
Sushiro Global Holdings 3563.T jumped 7.9% to a record high after the sushi restaurant chain operator announced solid earnings and dividend hikes while security company Secom 9735.T also gained after brisk earning growth in July-September.
On the other hand, diaper maker Unicharm 8113.T fell 7.6% as its earnings growth fell short of market expectations.
Bridgestone 5108.T dipped 1.8% after the tyre maker cut its annual profit outlook.
Amusement store operator Round One 4680.T dropped 13.7% after it cut its annual profit estimate and posted a fall in revenue in October.
(Editing by Jacqueline Wong)
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.