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Tokyo stocks open lower amid Italy, N.Korea worries
TOKYO, May 29, 2018 (BSS/AFP) – Tokyo stocks opened lower Tuesday, dragged
down by lingering uncertainty over the prospects for a US-North Korea summit
and a political crisis in Italy which is heading for fresh elections.
The benchmark Nikkei 225 index lost 0.32 percent or 71.00 points to
22,410.09 in early trade while the broader Topix index was down 0.27 percent
or 4.75 points at 1,765.67.
“A wait-and-see mood is likely to spread as Italian risk emerged on top of
uncertainty over the prospects for the US-North Korea summit and concerns
about US-China trade tensions,” SBI Securities said in a commentary.
Italy was plunged into political chaos after the anti-establishment Five
Star Movement and the far-right League’s bid to form a government collapsed.
President Sergio Mattarella on Monday named a former IMF economist as
caretaker prime minister to lead the country into new elections, possibly as
soon as the autumn.
While US markets were closed for a holiday, European stocks, bonds and the
euro fell on Monday as investors feared the nomination of a caretaker
government will only delay, but not avert, a eurozone crisis.
The dollar inched down to 109.21 yen from 109.35 yen in Europe on Monday
while the euro stayed weak, buying $1.1626 against $1.1624.
Investors largely shrugged off a Japanese government survey showing the
jobless rate was flat at 2.5 percent in April, hovering near the lowest level
in 25 years.
In individual stock trade, companies doing a large percentage of their
business in Europe were weaker, with Mazda down 0.46 percent at 1,403.5 yen.
Hitachi fell 1.07 percent to 816.8 yen as investors watch its negotiations
with the British government over a major nuclear power project.
BSS/AFP/MR/ 1055 hrs