ZCZC
BCN-05
STOCKS-MARKETS-JAPAN-OPEN
Tokyo stocks drop nearly 2% at open after Wall St tumble
TOKYO, Oct 11, 2018 (BSS/AFP) – Tokyo stocks dropped nearly two percent at
the opening Thursday following a plunge in New York, as US traders fretted
about surging interest rates and the safe-haven yen climbed against the
dollar.
The benchmark Nikkei 225 index was down 1.94 percent or 457.03 points at
23,049.01 in early trade, while the broader Topix index was down 1.90 percent
or 33.49 points at 1,730.37.
Both indexes later extended losses, sinking by more than three percent
during morning trade.
Traders would be avoiding risk-taking after the drop on Wall Street and a
higher yen, strategist Yoshihiro Ito of Okasan Online Securities said in a
commentary.
US shares plunged as worries about surging US interest rates and the
impact of trade disputes prompted a broad-based selloff that slashed more
than three percent from major indices.
US Treasury Secretary Steven Mnuchin warned China on Wednesday against
engaging in competitive currency devaluations as the two countries wage a
trade war, in comments published in the Financial Times.
There are several factors behind the recent fall in the Chinese currency,
including economic issues in China, Mnuchin told the newspaper ahead of
meetings in Bali, Indonesia of the IMF, World Bank and G20.
“As we look at trade issues there is no question that we want to make sure
China is not doing competitive devaluations,” Mnuchin told the FT.
The dollar fetched 112.11 yen in early Asian trade, down from 112.35 yen
in New York and 113.00 yen in Tokyo late Wednesday.
Blue-chip exporters tumbled widely, with Olympus plunging 4.17 percent at
4,245 yen, Toyota off 3.07 percent at 6,552 yen, and Sony down 4.97 percent
at 6,242 yen.
BSS/AFP/HR/1015