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STOCKS-JAPAN-OPEN
Tokyo stocks open lower amid trade uncertainty
TOKYO, May 29, 2019 (BSS/AFP) – Tokyo stocks opened lower on Wednesday,
tracking falls on Wall Street, with worries growing again on trade as the
United States and China show few signs of progress on their dispute.
The benchmark Nikkei 225 index was down 0.93 percent, or 196.79 points, at
21,063.35 in early trade, while the broader Topix Index was down 0.91
percent, or 14.11 points, at 1,536.88.
US shares slid into the red as investors grew nervous about the economic
outlook and bond rates sank.
Falls in US Treasury bonds yields “are due to worries over an economic
slowdown” because there are no signs of an early deal between the US and
China on trade, Kyoko Amemiya, senior market advisor at SBI Securities, told
AFP.
Economists estimate the US-China trade war will have negative impacts on
the world’s number one and number two economies and in turn on the global
economy, as the costs of punitive tariffs would have to be paid by consumers.
“Unless we see a trade deal, negative sentiment in the market will likely
continue,” Amemiya said.
The safe-haven yen edged higher against both the dollar and the euro in
early Asian trade, with the dollar fetching 109.25 yen and the euro trading
at 122.03 yen, against 109.48 yen and 122.26 yen in New York.
A higher yen weighs on Japanese exporters as it makes Japanese-made goods
more expensive in overseas markets and shrinks their repatriated profits.
In Tokyo, blue-chip exporters were lower across the board, with Sony
trading down 2.03 percent at 5,347 yen, Panasonic off 2.37 percent at 876.1
yen, and chip-testing equipment maker Advantest down 3.24 percent at 2,595
yen.
Toyota was down 1.34 percent at 6,515 yen, Honda was off 1.31 percent at
2,735.5 yen and Nissan slid 0.73 percent to 759.6 yen.
On Wall Street, the Dow ended down 0.9 percent at 25,347.77.
BSS/AFP/HR/0920