The Japanese stock market Nikkei index stopped rising on Friday for four days, as weak US economic data suppressed sentiment. However, there have been more signs of progress in Sino-US trade negotiations, which has curbed stock market selling.
Nikkei. N225 closed down 0.42% to 21,374.77 in early trading, but still rose 2.3% this week.
US core capital goods orders unexpectedly fell in December last year, due to the decline in demand for machinery and primary metals, indicating that corporate equipment spending continues to slow, which may further drag economic growth.
Another report released by the Federal Reserve Bank of Philadelphia on Thursday underscores the continued weakening of corporate spending prospects. The report showed that the February manufacturing activity index fell to -4.1 from 17.0 in January, the first negative since May 2016.
The National Association of Real Estates (NAR) reported that existing home sales fell 1.2% last month, with a seasonally adjusted annual rate of 4.94 million, the lowest since November 2015.
"Weak US economic data is worrying about the market, but hopes for more progress in Sino-US trade negotiations are supporting the popularity," said Shoji Hirakawa, chief global strategist at the Tokai Tokyo Survey Center.
Hirakawa said that after the Nikkei index broke the first resistance at 21,500 on Thursday, investors turned their attention to the next resistance at 21,800.
The global market focus is also on the high-level Sino-US negotiations in Washington. It is less than a week since the United States imposed tariffs on more Chinese exports to the United States.
In terms of stocks, financial stocks such as banks and brokerages that have recently risen have fallen. Mitsubishi UFJ Financial Group 8306.T closed down 1.58% in early trading, Sumitomo Sumitomo Financial Group 8316.T fell 0.99%, and Nomura Holdings 8604.T fell 1.57%.
Shipping stocks. ISHIP.T fell 2.49%, becoming the worst performer due to overnight Baltic Dry Freight Index. BADI fell 2%. Merchant Marine Mitsui 9104.T fell 2.4%, and Kawasaki Steamship 9107.T fell 3.79%.
Texa Stock Price Index .TOPX closed down 0.45% to 1,606.22 points in early trading. Falling stockThe number exceeded the rising stocks, which were 1,452 and 570 respectively.