Japan shares fall on profit-taking after U.S.-China trade deal

  • Reuters
  • Stock Market News
Japan shares fall on profit-taking after U.S.-China trade deal
Credit: © Reuters.

By Stanley White

TOKYO, Dec 16 (Reuters) - Japanese stocks fell on Monday, slipping from an over one-year high hit in the previous session, as investors booked profits following an initial rally sparked by a preliminary trade deal between the United States and China.

At 0149 GMT, the Nikkei index was down 0.11 % at 23,995.97, with the industrial and healthcare sectors leading the declines. It is up 20.03% so far for the year.

U.S. Trade Representative Robert Lighthizer on Sunday said a so-called "phase one" deal was "totally done", notwithstanding some needed revisions, adding that it would nearly double U.S. exports to China over the next two years. will purchase the U.S. goods in exchange for the delay of U.S. tariffs on Chinese goods originally scheduled to take affect on Dec. 15 and the reduction of some existing tariffs, but officials in Beijing have been vague about the size of these purchases.

The United States and China had been locked in a 17-month long trade dispute that became the biggest headwind to global economic growth. Scaling back the trade war would be a huge boost to international trade and corporate profits.

There were 63 advancers on the Nikkei index against 153 decliners on Monday.

The largest percentage losers in the index were Sumitomo Dainippon Pharma Co Ltd 4506.T down 3.09%, followed by Kobe Steel Ltd 5406.T losing 2.5% and drugs maker Daiichi Sankyo Co Ltd 4568.T down 2.37%.

The largest percentage gainers in the index were Internet services firm Z Holdings Corp 4689.T up 3.49%, followed by marine products company Nippon Suisan Kaisha Ltd 1332.T gaining 3.22% and cosmetics maker Shiseido Co Ltd 4911.T up by 3.13%.

Some investors are still awaiting clarity about the finer details of the trade deal.

Chinese purchases of agricultural goods are expected to increase to $40 billion to $50 billion annually over the next two years, Lighthizer said.

However, when asked specifically about the $50 billion figure, officials in Beijing said that details on value will be disclosed later. negotiators are expected to sign the deal during the first week of January in Washington.

The broader Topix index .TOPX fell 0.04% to 1,739.21.

The volume of shares traded on the Tokyo Stock Exchange's main board .TOPX was 0.47 billion, compared to the average of 1.24 billion in the past 30 days.

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