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Tokyo stocks close lower amid trade worries
TOKYO, May 29, 2019 (BSS/AFP) – Tokyo stocks closed lower on Wednesday
with worries growing again over trade as the United States and China show few
signs of progress on their dispute.
The benchmark Nikkei 225 index lost 1.21 percent or 256.77 points to
21,003.37, while the broader Topix Index ended the session down 0.94 percent,
or 14.59 points, at 1,536.41.
Falls in US Treasury bonds yields that sent global shares lower “are due
to worries over an economic slowdown” because there are no signs of an early
deal between the US and China on trade, Kyoko Amemiya, senior market advisor
at SBI Securities, told AFP.
Economists estimate the US-China trade war will negatively impact the
world’s number one and number two economies and in turn the global economy,
as the costs of punitive tariffs would have to be paid by consumers.
“Unless we see a trade deal, negative sentiment in the market will likely
continue,” Amemiya said.
After sharp falls in early trade, some shares recovered thanks to bargain-
hunting but “the pace of recovery is rather slow”, Minami Koura, strategist
at Daiwa Securities, said in a commentary.
The safe-haven yen edged higher against both the dollar and the euro in
late Tokyo hours, with the dollar fetching 109.20 yen and the euro trading at
121.89 yen, against 109.48 yen and 122.26 yen in New York.
A higher yen weighs on Japanese exporters as it makes Japanese-made goods
more expensive in overseas markets and shrinks their repatriated profits.
In Tokyo, some blue-chip exporters lost ground, with Sony declining 2.63
percent to 5,314 yen and chip-testing equipment maker Advantest dropping 3.98
percent to 2,575 yen.
Banks were also lower, reflecting falls in US bond yields, with Mitsubishi
UFJ Financial closing down 1.46 percent at 505.5 yen, Mitsui Sumitomo
Financial down 1.21 percent at 3,819 yen and Mizuho off 1.27 percent at 155.3
yen.
BSS/AFP/HR/1300