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Tokyo stocks open lower on profit taking
TOKYO, Sept 27, 2018 (BSS/AFP) – Tokyo stocks opened lower on Thursday on
profit taking after an eight-day winning streak and a rate hike by the US
Federal Reserve.
The benchmark Nikkei 225, which closed at an eight-month high on
Wednesday, was down 0.35 percent or 82.97 points at 23,950.82 in early trade,
while the broader Topix index was down 0.23 percent or 4.12 points at
1,817.55.
“Japanese share trade is seen led by sales on profit taking after falls in
US shares, a lull in the depreciation of the yen and a sense of overheating
after eight consecutive days of rallies,” said Yoshihiro Ito, chief
strategist at Okasan Online Securities.
The dollar fetched 112.70 yen in Asian trade, compared to 112.74 yen in
New York and 112.89 yen in Tokyo on Wednesday.
“Some investors may buy on dips on relief that the US will not impose
additional tariff levies on the Japanese auto industry” during bilateral
trade talks, Ito said.
US President Donald Trump and Japan’s Prime Minister Shinzo Abe announced
an agreement to start negotiations on a trade deal Wednesday in New York,
after talks on the sidelines of the United Nations General Assembly.
Abe later told reporters the two leaders had agreed to “refrain from
taking measures against the spirit of” their agreement, “which means the US
will not impose” additional tariffs on Japanese-made cars.
In Tokyo, banks were among the losers, with Mitsubishi UFJ down 1.75
percent at 703.7 yen, Sumitomo Mitsui Financial off 1.17 percent at 4,541 yen
and Mizuho Financial lower by 0.50 percent at 198.2 yen.
Automakers were mostly higher, with Toyota gaining 0.45 percent to 7,062
yen, Honda up 0.55 percent at 3,446 yen and Mazda climbing 1.64 percent at
1,356 yen.
In New York, the Dow closed down 0.4 percent at 26,385.28.
BSS/AFP/HR/0912