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Tokyo stocks open lower on investor caution
TOKYO, Sept 25, 2018 (BSS/AFP) – Tokyo’s benchmark stock index opened
lower on Tuesday as investors turned cautious after six days of gains and
waited for the outcome of Japan’s trade talks with the United States.
The key Nikkei 225 index, which ended last week at its best level since
January, slipped 0.19 percent or 44.56 points to 23,825.37 in early trade
while the broader Topix index was up 0.07 percent or 1.33 points at 1,805.35.
“Selling to lock in profits is likely to lead trading due to caution
against overheating,” SBI Securities said in a note.
“A wait-and-see mood may also spread as investors want to see how Japan-US
ministerial trade talks as well as the FOMC (Federal Reserve) meeting will
turn out,” it added.
The US central bank is to start a two-day meeting on Tuesday amid
expectations it will raise the benchmark lending rate for the third time this
year to rein in inflation.
Japan and the United States are also to hold high-level trade talks this
week. Japanese media have said Tokyo would agree to launch a new round of
bilateral trade consultations if Washington does not impose extra tariffs on
Japanese cars and auto parts.
Meanwhile, the US-China trade row has deepened with the world’s two biggest
economies trading fresh blows and Washington slapping new tariffs on another
$200 billion of Chinese imports.
The dollar was at 112.83 yen against 112.78 yen in New York Monday
afternoon.
In individual stocks trade, Toyota rose 0.72 percent to 7,051 yen while
Uniqlo clothing chain operator Fast Retailing dropped 1.16 percent to 56,140
yen.
Industrial machinery maker Komatsu, which does a lot of business with
China, fell 2.19 percent to 3,434 yen.
BSS/AFP/MR/ 1023 hrs