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Tokyo’s Nikkei closes lower ahead of US-Japan summit
TOKYO, May 24, 2019 (BSS/AFP) – Tokyo’s key Nikkei index closed lower on Friday on worries over the US-China trade war while traders eyed the US-Japan summit which will be held early next week.
The benchmark Nikkei 225 index lost 0.16 percent, or 33.92 points, to end at 21,117.22. It fell 0.63 percent over the week.
The broader Topix Index edged up 0.04 percent or 0.63 points at 1,541.21. It was down 0.84 percent over the week.
The US market “dropped sharply as worries intensified over the US-China trade war after China’s commerce ministry spokesperson said the US should correct its actions if it hopes to continue trade negotiations,” Toshiyuki Kanayama, senior market analyst at Monex, said in a commentary.
“The investor sentiment worsened (in Tokyo) due to concerns over the US-China trade war,” Online Okasan Securities wrote in a note.
On Thursday, China warned the United States that it must show “sincerity” if trade talks are to continue between the world’s top two economies.
“If the US wants to continue to talk, it should show sincerity and correct its mistaken actions. Only on the basis of equality and respect can the negotiations have the chance of continuing,” commerce ministry spokesman Gao Feng said at a press briefing.
The trade dispute has snowballed into a tech war, with the Chinese telecoms giant Huawei at the epicentre of a battle for supremacy in technologies that could shape the future of the world economy, such as next-generation 5G networks in which the Chinese firm is a global leader.
In Washington, US President Donald Trump for the first time linked a dispute over Huawei, which he views as a threat to American security, with a deal to resolve the US-China trade war.
The dollar fetched 109.55 yen in Asian trade, almost unchanged from 109.59 yen in New York but down from 110.29 yen in Tokyo on Thursday.
Tech-linked shares fell sharply in Tokyo, with chip-making equipment manufacturer Tokyo Electron losing 2.48 percent to 14,540 yen and chip-testing equipment maker Advantest off 0.22 percent at 2,663 yen.
China-linked shares were also lower, with electronic parts maker Rohm down 0.15 percent to 6,420 yen and industrial robot maker Fanuc 0.99 percent to 18,450 yen.
Panasonic, which said on Thursday it would stop supplying some components to telecom giant Huawei following the US ban, dropped 1.80 percent to 880.4 yen.
Japanese consumer prices rose a sluggish 0.9 percent last month, up just 0.1 percentage point from the previous month, according to government data published 30 minutes before the opening bell.
Investors shrugged off the figure, which was in line with market expectations.
BSS/AFP/MMA/1655HRS