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Tokyo’s Nikkei index down more than 1.7 percent over trade row
TOKYO, June 19, 2018 (BSS/AFP) – Tokyo’s benchmark Nikkei index dropped
more than 1.7 percent on Tuesday, with investors jittery over US-China trade
tensions and a strong yen.
The Nikkei 225 index fell 1.77 percent or 401.85 points to close at
22,278.48 while the broader Topix index was down 1.55 percent or 27.51 points
at 1,743.92.
The market was under pressure after Trump unveiled plans to impose 10
percent tariffs on $200 billion worth of Chinese goods over Beijing’s
“unacceptable” move to raise its own tariffs.
The US leader warned that after the new measures are in place — on top of
existing 25 percent tariffs on $50 billion in Chinese imports — tariffs on
another $200 billion would go forward “if China increases its tariffs yet
again.”
SBI Securities said the growing trade war had driven investors to the
sidelines “as it is hard to tell how the escalating trade frictions between
the United States and China will affect Japan.”
The Japanese currency rose on safe-haven buying, with the dollar buying
109.61 yen against 110.56 yen in New York on Monday afternoon.
“As the dollar fell below 110 yen, market sentiment deteriorated,” Shinichi
Yamamoto, broker at Okasan Securities in Tokyo, told AFP.
In Tokyo trading, Japanese flea market app Mercari soared 76.7 percent from
its IPO price to close at 5,300 yen as it debuted on the Tokyo Stock
Exchange.
“Mercari got off to a flying start” with investors impressed by its
successful business model, Yamamoto said.
Companies with strong business ties with China fell. Komatsu dropped 2.48
percent to 3,180 yen and Hitachi Construction Machinery slipped 1.52 percent
to 3,560 yen.
Fujifilm lost 1.56 percent to 4,215 yen after it filed a lawsuit against
Xerox in New York, seeking $1 billion in damages after the US giant scrapped
a merger with it.
BSS/AFP/MR/ 1417 hrs