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Tokyo stocks close lower
TOKYO, Aug 6, 2018 (BSS/AFP) – Tokyo stocks closed lower on Monday, with
investors sitting on the sidelines as fears grew of a US-China trade war and
the yen appreciated.
The benchmark Nikkei 225 index inched down 0.08 percent, or 17.86 points,
to close at 22,507.32, while the broader Topix index was down 0.56 percent,
or 9.68 points, at 1,732.90.
“Caution about further escalation in US-China trade frictions is still
strong,” Yoshihiro Ito, chief strategist at Okasan Online Securities, said in
a commentary.
“The yen’s slight appreciation could keep investors from active trade,” he
added.
New York stocks rose on Friday after a positive US jobs report.
But Beijing has threatened to impose levies on $60 billion of American
goods after President Donald Trump’s administration upped the ante in its
plans for additional tariffs on Chinese goods worth $200 billion.
The dollar traded at 111.29 yen against 111.25 yen in New York Friday but
was down from 111.71 yen in Tokyo before the weekend.
A stronger yen often drags down the Tokyo stock market as it clouds the
outlook for Japanese exporters by making their products less competitive
abroad. It also reduces profits when repatriated.
Toyota dropped 1.20 percent to 7,133 yen after losing 0.85 percent on
Friday on investor disappointment with the car giant’s decision to leave
unchanged its full-year guidance, despite robust first-quarter results.
Panasonic fell 1.36 percent to 1,449.5 yen and Sony lost 0.60 percent to
6,074 yen.
BSS/AFP/HR/1255