TOKYO, May 30, 2019 (BSS/AFP) – Tokyo stocks opened lower on Thursday,
following a negative lead from Wall Street as investors worried about
mounting tensions in the US-China trade row.
The benchmark Nikkei 225 index fell 0.57 percent, or 120.76 points, to
20,882.61 in early trade while the broader Topix index was down 0.63 percent,
or 9.64 points, at 1,526.77.
“Risk aversion will likely prevail due to an escalation in US-China trade
tensions and fresh concerns over Italian debt,” Okasan Online Securities said
in a note.
Investors were spooked on Wednesday as Chinese state media dangled the
threat of cutting exports of rare earths to the United States as a counter-
strike in the trade war.
It could deprive Washington of a key resource used to make everything from
smartphones to military hardware.
Concerns over Italy’s fiscal situation also added to investor gloom.
The European Union warned Italy over its soaring debt on Wednesday,
putting Brussels on a collision course with Italy’s far-right coalition
government.
The dollar was trading at 109.62 yen on Thursday, unchanged from New York
Wednesday afternoon.
Nissan was down 1.00 percent to 771.4 yen as Renault officials on
Wednesday sought to reassure its alliance partner over a possible tie-up
between the French automaker and Fiat Chrysler.
Top cosmetics maker Shiseido fell 2.57 percent to 7,844 yen while Sony
lost 0.47 percent to 5,289 yen.