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Tokyo stocks open lower as trade fears linger
TOKYO, May 13, 2019 (BSS/AFP) – Tokyo stocks opened lower on Monday, with
investors wary about renewed trade tensions between the United States and
China after talks failed to achieve a deal.
The benchmark Nikkei 225 index was down 0.85 percent or 181.11 points at
21,163.81 in early trade, while the broader Topix index was down 0.67 percent
or 10.33 points at 1,539.09.
US President Donald Trump on Sunday defended his tariff policy, insisting
again that China will pay billions in duties to the US, after Trump’s
economic advisor raised eyebrows by saying both sides will suffer.
“We are right where we want to be with China,” Trump said on Twitter.
“Remember, they broke the deal with us & tried to renegotiate. We will be
taking in Tens of Billions of Dollars in Tariffs from China.”
Trump had accused Beijing of reneging on its commitments in trade talks
and ordered new punitive duties, which took effect Friday, on $200 billion
worth of Chinese imports, raising them to 25 percent from 10 percent.
He then ordered a tariff hike on almost all remaining imports from China,
which are worth about $300 billion, according to US Trade Representative
Robert Lighthizer.
China responded that it would be forced to retaliate, without specifying
how.
“It remains to be seen how the markets will react this week once they are
back in full swing, but the news on the trade-tariff front is anything other
than reassuring,” David de Garis, senior analyst at National Australia Bank,
said in a note.
But Hideyuki Ishiguro, senior strategist at Daiwa Securities, said “the
market environment is not worsening significantly, as expectations are high
that US long-term rates will remain low.”
Investors are also watching a series of Chinese and US data due on
Wednesday, including Chinese retail sales in April, he added.
The dollar fetched 109.67 yen in early Asian trade, against 109.96 yen in
New York on Friday.
In Tokyo, China-related shares were lower, with electronic parts maker
Rohm trading down 2.64 percent at 7,350 yen and construction machine maker
Komatsu down 0.78 percent at 2,401.5 yen.
Panasonic was down 1.81 percent at 899.4 yen and Sony was down 0.72
percent at 5,369 yen.
SoftBank Group was down 3.34 percent at 10,505 yen after a report that its
SoftBank Vision Fund is injecting $800 million into UK fintech Greensill.
On Wall Street, the Dow ended up 0.4 percent at 25,942.37.
BSS/AFP/HR/0940