BCN-06 Tokyo stocks open lower on US-China trade worries

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BCN-06

STOCKS-MARKETS-JAPAN-OPEN

Tokyo stocks open lower on US-China trade worries

TOKYO, Aug 2, 2018 (BSS/AFP) – Tokyo stocks opened lower on Thursday after
drops on Wall Street as Washington threatened to raise tariffs on Chinese
goods.

The benchmark Nikkei 225 index lost 0.36 percent or 82.42 points to
22,664.28 in early trade, while the broader Topix index was down 0.11 percent
or 1.99 points at 1,767.77.

“Investors are worried as they don’t know whether the (US-China) trade war
is escalating or the countries are actually looking for a compromise plan,”
said Masayuki Kubota, chief strategist at Rakuten Securities.

“While concerns about the global economy linger, however, there are some
buybacks for companies whose earnings are good but are priced low,” providing
support for the market, he added in a commentary.

Washington said Wednesday it may jack up the tariff rate on the next $200
billion in Chinese imports it plans to target as it pressures Beijing to
reform its trade practices.

US Trade Representative Robert Lighthizer said President Donald Trump
asked him to consider increasing the proposed tariffs to 25 percent from the
planned 10 percent.

In Tokyo trade, selling hit companies with close business ties with China.

Machinery maker Komatsu fell 2.52 percent to 3,277 yen and factory robot-
maker Fanuc was down 1.34 percent at 22,075 yen.

Sony climbed 2.01 percent to 6,228 yen.

The dollar was trading at 111.64 yen against 111.62 yen in New York
Wednesday afternoon.

BSS/AFP/HR/0950