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Tokyo stocks open lower on reduced US-China trade hopes
TOKYO, Feb 28, 2019 (BSS/AFP) – Tokyo stocks opened lower on Thursday, as
the US chief trade negotiator poured cold water on market optimism over US-
China trade negotiations, saying “much still needs to be done”.
The benchmark Nikkei 225 index slipped 0.44 percent, or 94.43 points, to
21,462.08 in early trade, while the broader Topix index was down 0.40
percent, or 6.51 points, at 1,613.91.
US Trade Representative Robert Lighthizer said on Wednesday there remained
much to do before reaching a new trade agreement with China, even as both
sides signal their talks are nearing the finish line.
After months of negotiating with Beijing, “now we are making real
progress”, Lighthizer told Congress.
However, “much still needs to be done both before an agreement is reached
and more importantly after it is reached if one is reached.”
Lighthizer’s remarks to a House committee underscored the remaining
hurdles facing negotiators despite the apparent eagerness on both sides to
bring their trade war to an end.
The comments sent US shares mostly lower, and “poured cold water on the
optimistic atmosphere in markets”, Yoshihiro Ito, Okasan Online Securities
chief strategist, said in a note.
However, a relatively cheaper yen against the dollar was supporting the
downside of the Japanese market, he added.
The dollar fetched 110.88 yen in early Asian trade, down from 111.00 in
New York but up from 110.51 yen in Tokyo on Wednesday.
Japan’s factory output in January fell 3.7 percent from the previous
month, due chiefly to declines in production in automobiles and electronic
goods, official data released 10 minutes before the opening bell showed.
In Tokyo, China-linked shares were lower, with electronic parts maker Rohm
dipping 3.01 percent to 7,070 yen, industrial robot maker Fanuc off 1.43
percent at 18,570 yen and construction machinery maker Komatsu down 1.63
percent at 2,759 yen.
Automakers were among losers, with Toyota slipping 0.58 percent to 6,740
yen and Honda off 0.59 percent at 3,157 yen.
In New York, the Dow ended down 0.3 percent at 25,985.16, the broad-based
S&P 500 slipped 0.1 percent, while the tech-rich Nasdaq Composite Index edged
up 0.1 percent.
BSS/AFP/HR/0930