Roundup: Japan’s Nikkei ends slightly higher, U.S. economic concerns cap gains

TOKYO, Nov. 16– Japan’s benchmark Nikkei stock index closed marginally higher Wednesday amid eased geopolitical concerns, although gains were capped over fears of a U.S. economic slowdown. They added that the market’s upside was capped by renewed concerns about the health of the U.S. economy, following U.S. producer prices in October rising at a slower pace than…

TOKYO, Nov. 16 (Xinhua) — Japan’s benchmark Nikkei stock index closed marginally higher Wednesday amid eased geopolitical concerns, although gains were capped over fears of a U.S. economic slowdown.

The 225-issue Nikkei Stock Average edged up 38.13 points, or 0.14 percent, from Tuesday to close the day at 28,028.30.

The broader Topix index, meanwhile, gained 0.93 points, or 0.05 percent, to finish at 1,963.29.

Local brokers said issues were offloaded in early trade due to geopolitical concerns, but investors bought back stocks as fears subsequently eased.

They added that the market’s upside was capped by renewed concerns about the health of the U.S. economy, following U.S. producer prices in October rising at a slower pace than median economists’ forecasts.

The U.S. Labor Department said on Tuesday the producer price index (PPI) for final demand rose 0.2 percent last month. With data showing consumer prices rose less than expected in October, signaled inflation is slowing down, market analysts said.

“Gains in the Nikkei were limited amid concerns about a slowing economy in the United States and Europe, as softer-than-expected U.S. inflation data raised concerns about a slowing economy,” Ikuo Mitsui, fund manager at Aizawa Securities, was quoted as saying.

“A peak out of inflation means the economy will start to weaken,” added Mitsui.

Chip-related issues found favor following the tech-heavy Nasdaq closing higher overnight, with Screen Holdings rising 1.2 percent, while Nikkei heavyweight Tokyo Electron advanced 1.6 percent.

Conversely, insurance-oriented stocks dragged, with Dai-ichi Life Holdings falling 3.6 percent, while T&D Holdings closed 4.1 percent lower, losing the most on the Nikkei.

By the close of play, mining, wholesale trade, and information and technology issues comprised those that gained the most on the Prime Market.

Rising issues outpaced falling ones by 940 to 821, while 75 ended the day unchanged.

The turnover on the third trading day of the week came to 3,513.20 billion yen (25.17 billion U.S. dollars). Enditem