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STOCKS-JAPAN-OPEN
Tokyo stocks open lower amid revived worries over trade
TOKYO, Jan 23, 2019 (BSS/AFP) – Tokyo stocks opened lower on Wednesday as
concerns over the US-China trade war resurfaced.
The benchmark Nikkei 225 index was down 0.80 percent or 164.15 points at
20,458.76 in early trade, while the broader Topix index fell 0.69 percent, or
10.80 points, to 1,545.63.
The White House on Tuesday said high-level trade talks with Beijing were
proceeding uninterrupted, quickly rebutting media reports that progress
toward resolving their trade war had faltered.
Chinese Vice Premier Liu He is to meet his US counterparts in Washington
next week as the two sides work to resolve their trade disagreements by March
1, when a 90-day truce is due to expire, allowing US import duties on Chinese
goods to increase sharply.
The Financial Times and CNBC both reported Tuesday afternoon that
Washington had cancelled a preliminary meeting set for this week ahead of
Liu’s visit.
The reports sent Wall Street even further into the red. US stocks had
already opened lower on downgraded forecasts for global economic growth.
But shortly before the close of trading in New York, top White House
economic aide Larry Kudlow flatly denied the reports during an appearance on
CNBC.
“With respect, the story is not true,” Kudlow said.
US stock prices recovered some of their losses following his remarks but
still finished substantially lower for the day.
Global bourses fell on Tuesday also because Chinese President Xi Jinping’s
speech on Monday “stressing the need to maintain political stability has been
interpreted as a worrying sign over the country’s slowing economy while US
data also printed on the softer side of expectations,” National Australia
Bank’s strategist Rodrigo Catril said in a note.
The dollar was trading at 109.38 yen in Asian trade, against 109.37 yen in
New York late Tuesday.
In Tokyo, Sony was down 1.00 percent at 5,298 yen and Panasonic was off
0.61 percent at 1,058 yen.
Automakers were among losers, with Honda trading down 1.45 percent at
3,192 yen, Toyota off 0.26 percent at 6,767 yen and Nissan down 0.31 percent
at 910.9 yen.
On Wall Street, the Dow ended down 1.2 percent at 24,404.48.
BSS/AFP/HR/1002