TOKYO, March 7, 2019 (BSS/AFP) – Tokyo stocks opened lower on Thursday,
extending a two-day losing streak as investor sentiment remained slack on
worries over the global economy.
The benchmark Nikkei 225 index lost 0.63 percent, or 135.79 points, to
21,461.02 in early trade while the broader Topix index was down 0.59 percent,
or 9.46 points, at 1,605.79.
“Selling will likely lead trade on the Japanese stock market as investors
were discouraged by continued falls in US stocks and concerns about a
slowdown in the global economy,” Okasan Online Securities chief strategist
Yoshihiro Ito said in a note.
Wall Street stocks closed lower on Wednesday on the dimming outlook for
economic growth and questions over US-China trade talks.
Sentiment was dented by the Organisation for Economic Cooperation and
Development on Wednesday, which cut its global growth forecast for 2019 to
3.3 percent from the prior 3.5 percent.
“High policy uncertainty, ongoing trade tensions and a further erosion of
business and consumer confidence are all contributing to the slowdown,” the
OECD said in an interim version of its Economic Outlook.
In individual stocks trade in Tokyo on Thursday, Nissan fell 1.25 percent
to 926.4 yen on concerns over model change-overs and its marketing strategy.
“The sun will rise again but it will take time,” SMBC Nikko Securities
said in a note as it lowered its investment guidance on the automaker.
Microchipmaker Renesas tumbled 14.61 percent to 584 yen as the Nikkei
economic daily reported the company has temporarily halted production at
several plants as Chinese demand flags.
Mizuho Financial Group fell 1.59 percent to 172.4 yen after the major bank
slashed its annual profit estimate.
The dollar was trading at 111.63 yen against 111.76 yen in New York
Wednesday afternoon.