ZCZC
BCN-25
STOCKS-MARKETS-JAPAN-CLOSE
Tokyo stocks close lower on reduced US-China trade hopes
TOKYO, Feb 28, 2019 (AFP) – Tokyo stocks fell Thursday as the US chief
trade negotiator poured cold water on market optimism over US-China trade
negotiations, while investors were also watching the US-North Korea summit.
The benchmark Nikkei 225 index slipped 0.79 percent, or 171.35 points, to
close at 21,385.16, while the broader Topix index was down 0.79 percent, or
12.76 points, at 1,607.66.
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 110.91 yen in Asian afternoon trade, down from 111.00 in
New York but up from 110.51 yen in Tokyo on Wednesday.
Trading was thin as investors were sidelined waiting for results of a
summit between US President Donald Trump and North Korean leader Kim Jong Un
in Hanoi.
“Players want to confirm if the summit would lead to easing regional
tension,” Daiwa Securities senior technical analyst Hikaru Sato told AFP.
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 3.56 percent to 7,030 yen, industrial robot maker Fanuc off 2.12
percent at 18,440 yen and construction machinery maker Komatsu down 2.63
percent at 2,731 yen.
Automakers were among losers, with Toyota slipping 1.22 percent to 6,697
yen and Honda off 0.72 percent at 3,153 yen.
BSS/AFP/HR/1235