By Hideyuki Sano
TOKYO, Nov 7 (Reuters) - Japanese shares posted small gains
to close at a one-year high on Thursday, although worries over
possible delays in a first-phase Sino-U.S. trade deal capped
gains, while Softbank Group slid on its first quarterly loss in
14 years.
The Nikkei share average .N225 ended up 0.11% at
23,330.32, its highest finish since early October last year.
The broader Topix .TOPX gained 0.22% to 1,698.13, also a
one-year high, with growth shares .TOPXG outperforming with
gains of 0.38%.
"The market is very strong at the moment. For one, there are
signs the global chip sector is bottoming out and the U.S. Fed
is likely to keep its easy stance, so a recession will likely be
avoided," said Tetsuro Ii, president of Commons Asset
Management.
"Foreign investors are buying Japanese stocks as global
cyclical shares," he added.
Keeping gains in check was a Reuters report that a meeting
between U.S. President Donald Trump and Chinese President Xi
Jinping to sign an interim trade deal could be delayed until
December as discussions continue over terms and venue.
Still, over the past month, the Nikkei had rallied about 8%
and Topix 7%, outperforming most other markets, on rising
expectations that Washington and Beijing will sign a "phase one"
deal as a first step toward resolving their 16-month long trade
dispute.
Those strong gains came even as Japanese corporate earnings
have yet to show a broad-based recovery.
A Reuters Tankan poll on Thursday showed Japanese
manufacturers turned the most pessimistic in 6-1/2 years in
November and the service-sector mood fell to three-year lows,
hurt by the global slowdown, natural disasters and a sales tax
hike at home. Softbank Group 9984.T fell 2.2% after it posted an
operating loss of 704 billion yen ($6.5 billion) in the
July-September quarter due to a writedown on its investment
through its giant Vision Fund on WeWork and Uber Technologies
UBER.N . Mitsubishi Motors 7211.T fell 6.8% after the carmaker
slashed its full-year profit outlook by 67% as it expects
sluggish demand in North America and China to continue.
Graphite electrode maker Tokai Carbon 5301.T lost 4.7% on
disappointing earnings due to slowing demand while rival
manufacturer Showa Denko 4004.T also dropped 0.3% following
its earnings.
On the other hand, Olympus 7733.T soared 15.1% to a record
high after its quarterly earnings beat market estimates, helped
by strong sales of endoscopes.
Medical equipment maker Sysmex 6869.T gained 7.0% and
discount store operator Pan Pacific International 7532.T
jumped 5.6% on brisk earnings.
(Editing by Jacqueline Wong)