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Tokyo stocks close lower on geopolitical worries
TOKYO, June 26, 2019 (BSS/AFP) – Tokyo stocks closed lower on Wednesday,
extending falls on Wall Street as investors fled to safe haven assets amid
US-Iran tensions and ahead of the G20 summit this week.
The benchmark Nikkei 225 index was down 0.51 percent, or 107.22 points, to
end at 21,086.59, while the broader Topix index lost 0.59 percent, or 9.15
points, at 1,534.34.
“Uncertainties over the environment outside Japan have not been wiped out,
although the dollar-yen became steady” in afternoon trade, Yoshihiro Ito,
chief strategist at Okasan Online Securities, said in a commentary.
Iran said Tuesday it will further reduce its commitment to a 2015 nuclear
deal, in defiance of new American sanctions as US President Donald Trump
warned the Islamic republic of “overwhelming” retaliation to any attack.
Tensions between Iran and the US have spiralled since last year when Trump
withdrew the United States from the deal under which Tehran was to curb its
nuclear programme in exchange for relief from economic sanctions.
The two arch-rivals have been locked in an escalating war of words since
Iran shot down a US surveillance drone in what it said was its airspace, a
claim the US vehemently denies.
Investors are looking ahead to a planned meeting at the Group of 20 later
this week between Trump and Chinese leader Xi Jinping, hoping for signs of
progress in resolving the two countries’ trade war.
The dollar remained low against the safe haven yen.
The greenback changed hands at 107.36 yen in Asian trade, little changed
from the level in New York late Tuesday and slightly up from 106.99 yen on
Tuesday afternoon Tokyo time.
In Tokyo, airlines were among losers, with ANA Holdings falling 0.11
percent to 3,541 yen and Japan Airlines 0.34 percent to 3,431 yen.
Automakers were also lower, with Honda sliding 1.24 percent to 2,731 yen,
Toyota 0.57 percent to 6,613 yen and Nissan 0.40 percent to 761.2 yen.
Mitsubishi Heavy Industries lost 1.80 percent to 4,720 yen after Canadian
aerospace firm Bombardier said it is effectively exiting the commercial
airline manufacturing sector with the sale of its CRJ Series regional jet
programme to the Japanese firm for $550 million.
BSS/AFP/HR/1305