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Tokyo’s Nikkei closes flat on investor jitters over trade
TOKYO, Aug 3, 2018 (BSS/AFP) – Tokyo’s key Nikkei index closed flat on
Friday as investors retreated to the sidelines over global trade frictions
and ahead of the release of key jobs data.
The Nikkei 225 edged up 0.06 percent or 12.65 points to 22,525.18. Over
the week, it lost 0.83 percent.
The broader Topix index fell 0.54 percent or 9.51 points to end at
1,742.58, tumbling 1.87 percent over the week.
The Topix fell on drops in bank shares, which are less represented in the
Nikkei.
Despite flat trade, Japan’s stock market crept ahead of China’s on Friday,
becoming the world’s second-biggest.
But the development was largely due to major slumps on the benchmark
Shanghai Composite Index this year, and Friday trade in Tokyo was weighed
down by fears that the US-China trade war could escalate.
“The Nikkei also fluctuated narrowly due to a strong wait-and-see mood
ahead of US-Japan trade talks starting next week,” Okasan Online Securities
said in a commentary.
US Trade Representative Robert Lighthizer is expected to meet with Japan’s
economic revitalisation minister Toshimitsu Motegi in Washington on August 9
amid US threats of tariffs on the automobile sector, which would be a major
blow to Japan.
Investors were also waiting for monthly US jobs data due out later Friday
to find clues on the future course of the US monetary policy.
The dollar was trading at 111.71 yen against 111.66 yen in New York on
Thursday afternoon.
Among individual stocks, Toyota shares reversed early gains and closed
down 0.85 percent at 7,220 yen after the car giant left unchanged its full-
year guidance despite a record first-quarter net profit.
“Uncertainty over its future lingers due to the trade frictions,” said
Makoto Sengoku, market analyst at Tokai Tokyo Research Institute.
“Investors are also discouraged as costs are becoming higher, which is
going to squeeze Toyota’s profits,” he said.
Panasonic, which supplies batteries to Tesla, rallied 2.22 percent to
1,469.5 yen after the electric car maker enjoyed huge gains in New York.
Leading bank Mitsubishi UFJ fell 1.33 percent to 693.1 yen and Sumitomo
Mitsui Financial lost 1.42 percent to 4,481 yen.
BSS/AFP/HR/1355