ZCZC
BCN-02
STOCKS-MARKETS-JAPAN-OPEN
Tokyo stocks open lower as yen rises
TOKYO, Aug 5, 2019 (BSS/AFP) – Tokyo stocks opened lower on Monday,
weighed down by a strong yen and continued drops in US shares amid US-China
trade woes.
The benchmark Nikkei 225 index lost 0.72 percent or 151.14 points to
20,936.02 in early trade while the broader Topix index was down 0.82 percent
or 12.52 points at 1,520.94.
“Japanese stocks will likely be weighed down by the continued drops in US
stocks and the yen’s rise into the 106 range” against the dollar, Okasan
Online Securities chief strategist Yoshihiro Ito said in a note.
The greenback was trading at 106.33 yen early Monday, down from 106.59 yen
in New York on Friday afternoon and rates above 108.00 yen seen a week
earlier.
A strong yen is a negative for Japanese exporters as it makes their
products less competitive abroad and also erodes profits when repatriated.
Investor sentiment took a hit last week as US President Donald Trump
unveiled new tariffs on China, cranking up trade tensions between the world’s
top two economies.
News that demand for US exports had weakened underscored concern that
trade was becoming a trouble spot for economies worldwide.
On Wall Street Friday, all three major indices sank to their lowest levels
since June.
In individual stocks trade in Tokyo on Monday, Toyota fell 0.92 percent to
6,865 yen while Sony fell 1.83 percent to 5,831 yen.
Nintendo was down 1.98 percent at 39,490 yen.
BSS/AFP/HR/0915