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STOCKS-MARKETS-JAPAN-OPEN
Tokyo stocks open lower as global trade worries weigh
TOKYO, July 2, 2018 (BSS/AFP) – Tokyo stocks opened lower on Monday amid
worries about global trade as a key business sentiment survey showed
confidence among Japan’s biggest manufacturers has slipped.
The benchmark Nikkei 225 index dropped 0.21 percent or 47.85 points to
22,256.66 in early trade while the broader Topix index was down 0.23 percent
or 4.00 points to 1,726.89.
“Caution remains strong over the Trump administration’s trade policy
towards China,” said Makoto Sengoku, market analyst at Tokai Tokyo Research
Institute.
“It is hard to predict exactly how the real economy as well as market
sentiment would be affected” with the US administration poised to roll out
tariffs on some $34 billion of Chinese imports on Friday, he told AFP.
A quarterly survey from the Bank of Japan showed confidence among major
manufacturers slipping for the second straight quarter, but Sengoku said its
negative impact on markets was small compared with the broader concerns over
global trade.
The headline reading in the June report came in at a slightly worse-than-
expected 21, down from 24 in March.
“The reading was not a positive factor but didn’t fall so deeply, despite
the tough conditions in the April-June period ranging from the US-China trade
spat to concerns over Europe” after the political shake-up in Italy, Sengoku
said.
The yen has not strengthened enough to dampen Japanese exports,
underpinning exporters’ sentiment, he added.
The dollar was trading at 110.77 yen against 110.61 yen in New York on
Friday.
Nissan lost 1.11 percent to 1,066 yen while Toyota rose 0.20 percent to
7,185 yen.
Nintendo gained 0.27 percent to 36,300 yen and Sony rose 1.12 percent to
5,728 yen.
BSS/AFP/HR/0955