TOKYO, May 7 ― Tokyo's key Nikkei stock index opened down today after an unprecedented 10-day break, tracking global declines after US President Donald Trump threatened new tariffs on Chinese goods.
The benchmark Nikkei 225 index was down 0.65 per cent, or 145.42 points, at 22,113.31 in early trade, while the broader Topix index was down 0.42 per cent, or 6.83 points, at 1,611.10.
Trump on Sunday vowed to raise tariffs to 25 per cent from the current 10 per cent on US$200 billion (RM829 billion) in Chinese merchandise by the end of this week, expressing frustration at the pace of US-China negotiations.
Masayuki Kubota, chief strategist at Rakuten Securities, said investors would now be closely watching for any new comments from the US side for clues on whether the administration will make good on the threat.
“Global stocks may continue to fall on fears of escalation in the trade war,” he added in a commentary.
“If the Shanghai market rebounds today, that could help” the Japanese market to rally, he noted.
The dollar traded at ¥110.73 in early Asian trade, down slightly from ¥110.87 in New York on Monday but lower than ¥111.67 in Tokyo before 10 days of holidays.
A higher yen against the dollar in general weighs on Japanese exporters because their goods are more expensive in foreign markets while their expatriated profits shrink.
In Tokyo, automakers were among losers, with Toyota trading down 1.50 per cent at ¥6,801, Honda off 1.61 per cent at ¥3,051 and Nissan down 1.70 per cent at ¥878.1.
Sony rallied 5.42 per cent to ¥5,495 after it said its annual profits had climbed to record highs for the second consecutive year thanks to a robust performance by its entertainment business.
Chip-testing equipment maker Advantest was down 3.00 per cent at ¥3,033 after its profit forecasts missed analyst estimates. ― AFP
