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Tokyo stocks close lower on stronger yen, trade worries
TOKYO, June 3, 2019 (B SS/AFP) – Tokyo stocks closed lower on Monday amid
escalating global trade tensions, with a stronger yen also weighing on the
market.
The benchmark Nikkei 225 index ended down 0.92 percent, or 190.31 points,
at 20,410.88, while the broader Topix market lost 0.88 percent, or 13.32
points, to 1,498.96.
“Worries over the US-led trade war and a higher yen prompted sell orders
in the Tokyo market, with no strong appetite for bargain hunting,” Okasan
Online Securities said in a commentary.
US President Donald Trump’s surprise threat Thursday to place duties on
all imports from Mexico, beginning at five percent on June 10 and rising to
as high as 25 percent, rattled world markets on Friday.
On Sunday, Trump stepped up his attacks on Mexico over immigration, as a
top aide warned the US president is “deadly serious” about imposing tariffs
on imports from the southern neighbour.
“People have been saying for years that we should talk to Mexico. The
problem is that Mexico is an ‘abuser’ of the United States, taking but never
giving,” Trump said in a series of tweets Sunday.
China on Sunday warned that while it wants resolution of a trade war with
the US through talks, there will be no compromise on its core principles.
The dollar fetched 108.24 yen in Asian trade, against 108.35 yen in New
York and 108.92 yen in Tokyo afternoon hours on Friday.
In Tokyo, electronics and chip-linked shares were broadly lower, with
Sharp dropping 3.09 percent to 958 yen, chip-testing equipment maker
Advantest losing 1.21 percent to 2,520 yen and chip-making equipment
manufacturer Tokyo Electron down 2.06 percent at 14,454 yen.
SoftBank Group dived 6.22 percent to 9,612 after a report that SoftBank’s
attempt to raise money for a second large investment fund is running into
trouble, with some of the biggest money managers in the world showing little
interest.
BSS/AFP/HR/1305