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Tokyo stocks close lower ahead of Japan-US trade talks
TOKYO, Aug 9, 2018 (BSS/AFP) – Tokyo stocks slipped Thursday, dragged by a
stronger yen and caution ahead of Japan-US trade talks.
The benchmark Nikkei 225 index dropped 0.20 percent, or 45.92 points, to
22,598.39, while the broader Topix index lost 0.26 percent, or 4.55 points,
to 1,740.16.
“After Wall Street ended mixed overnight, investors became wary of seeing a
firmer yen in the morning. That meant the Nikkei opened under selling
pressure,” Okasan Online Securities chief strategist Yoshihiro Ito said in a
commentary.
“Ahead of the Japan-US trade talks, a wait-and-see mood prevailed in the
market,” he said.
The Nikkei trimmed earlier losses once Chinese shares started moving into
positive territory, he added.
The dollar sank to 110.71 yen in the morning. from 110.96 yen in New York
Wednesday, before rebounding in the afternoon.
In the midst of a bitter trade spat with China, US Trade Representative
Robert Lighthizer is to meet Japan’s economic revitalisation minister
Toshimitsu Motegi in Washington Thursday.
Japan is hoping to win concessions on threatened US auto tariffs, which
pose a threat to the industry if implemented.
“Although concrete outcomes are not expected, we may still get a sense of
how far apart or not the two nations are,” Rodrigo Catril, senior foreign
exchange strategist at National Australia Bank, said in a client note.
Automakers were lower, with Toyota down 1.01 percent at 6,990 yen.
Selling was particularly heavy for Suzuki Motor, along with Mazda and
motorcycle maker Yamaha, after the government said the firms cheated on fuel-
efficiency and emissions tests in the latest data-falsification scandal to
hit Japanese companies.
Suzuki tumbled 6.04 percent to 6,944 yen and Mazda lost 1.30 percent to
1,327 yen. Yamaha Motor gave up 4.63 percent to 2,820 yen.
SoftBank Group fell 0.38 percent to 10,490 yen after Bloomberg News
reported Tesla chief Elon Musk and SoftBank head Masayoshi Son held
unsuccessful talks last year about the Japanese group investing in the US
electric car maker.
BSS/AFP/HR/1335