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STOCKS-MARKETS-JAPAN-OPEN
Tokyo shares open lower on Turkey crisis
TOKYO, Aug 13, 2018 (BSS/AFP) – Tokyo stocks opened lower Monday as
investors watched tension between the US and Turkey that has driven down the
lira, fanning fears of possible wider financial instability.
The benchmark Nikkei 225 index fell 0.83 percent or 185.56 points to
22,112.2 while the broader Topix index gave up 0.83 percent or 14.22 points
to 1,705.94.
The Turkish lira fell to a new record low of 7.2362 to the dollar
overnight, before recovering to around 6.8222 in Asian trading, similar to
its trading price on Friday.
Experts said Tokyo trade would be under pressure with investors worried
about the possibility of contagion from Turkey.
“The dominating theme of this week is likely to be the Turkish situation,”
Okasan Online Securities said in a note to clients.
“The ‘Turkey shock’ from last weekend, triggered by sharp plunges of the
lira, has fuelled fears that it may impact financial institutions in Europe,”
it said.
The Turkish lira began its plunge last week on the nation’s rising
tensions with US President Donald Trump, who is demanding the release of an
American pastor held in Turkey and has doubled steel and aluminium tariffs on
the country.
President Recep Tayyip Erdogan has responded with defiance, describing the
crash as a “political plot” against Turkey.
Okasan said investors would also be looking to Chinese economic data,
including retail sales and industrial production, as Washington stokes trade
tensions with Beijing.
But solid quarterly earnings from many firms would support Tokyo trade,
the brokerage said.
The dollar was at 110.68 yen, slightly off from 110.88 yen seen Friday in
New York.
Among major shares, Toyota dropped 1.09 percent to 6,875 yen, while Sony
fell 1.52 percent to 5,959 yen.
Mitsubishi UFJ Financial Group gave up 2.57 percent to 652.3 yen, while
Mizuho Financial Group lost 1.64 percent to 191.8 yen.
BSS/AFP/HR/0945