TOKYO, Jan 4, 2019 (BSS/AFP) – Tokyo’s key Nikkei index plunged more than
three percent in opening trade Friday, hit by a surge in the yen and sell-
offs on Wall Street amid worries over the US economy.
In its first trading session of 2019, the benchmark Nikkei 225 lost 3.32
percent, or 665.37 points, to 19,349.40 as it was catching up with other
markets after the New Year’s break.
The broader Topix index lost 2.93 percent, or 43.72 points, to 1,450.37.
Since the last session in Tokyo on December 28, heavy selling has hit
global markets.
On Wall Street on Thursday, stocks plunged as China’s slowing economy
forced Apple to slash its revenue forecast.
Sentiment in the United States was further dented by Institute for Supply
Management data showing US manufacturing activity at a two-year low.
The weak data was “more proof, if needed, that President (Donald) Trump’s
trade actions against China are now hurting the US as much as they are
China,” said Ray Attrill, head of foreign exchange strategy and markets at
National Australia Bank.
It is “more reason to think a Sino-US trade deal is in the offing in coming
weeks,” he said in a note.
Apple late on Wednesday cut its revenue outlook for the latest quarter,
citing steeper-than-expected “economic deceleration” in China and emerging
markets, factors that have contributed to sharp falls across stock markets
since late last year.
Apple’s warning contributed to a rally by the Japanese yen, which tends to
benefit from a “flight to safety” when investor anxiety is high.
The dollar was trading at 107.62 yen, hardly changed from New York Thursday
afternoon but still considerably lower than the 110-yen range seen when the
Tokyo market closed for the last year.