TOKYO, May 13 — Tokyo stocks opened lower today, with investors wary about renewed trade tensions between the United States and China after talks failed to achieve a deal.
The benchmark Nikkei 225 index was down 0.85 per cent or 181.11 points at 21,163.81 in early trade, while the broader Topix index was down 0.67 per cent or 10.33 points at 1,539.09.
US President Donald Trump yesterday defended his tariff policy, insisting again that China will pay billions in duties to the US, after Trump’s economic advisor raised eyebrows by saying both sides will suffer.
“We are right where we want to be with China,” Trump said on Twitter.
“Remember, they broke the deal with us & tried to renegotiate. We will be taking in Tens of Billions of Dollars in Tariffs from China.”
Trump had accused Beijing of reneging on its commitments in trade talks and ordered new punitive duties, which took effect Friday, on US$200 billion worth of Chinese imports, raising them to 25 per cent from 10 per cent.
He then ordered a tariff hike on almost all remaining imports from China, which are worth about US$300 billion, according to US Trade Representative Robert Lighthizer.
China responded that it would be forced to retaliate, without specifying how.
“It remains to be seen how the markets will react this week once they are back in full swing, but the news on the trade-tariff front is anything other than reassuring,” David de Garis, senior analyst at National Australia Bank, said in a note.
But Hideyuki Ishiguro, senior strategist at Daiwa Securities, said “the market environment is not worsening significantly, as expectations are high that US long-term rates will remain low.”
Investors are also watching a series of Chinese and US data due on Wednesday, including Chinese retail sales in April, he added.
The dollar fetched ¥109.67 in early Asian trade, against ¥109.96 in New York on Friday.
In Tokyo, China-related shares were lower, with electronic parts maker Rohm trading down 2.64 per cent at ¥7,350 and construction machine maker Komatsu down 0.78 per cent at ¥2,401.5.
Panasonic was down 1.81 per cent at ¥899.4 and Sony was down 0.72 per cent at ¥5,369.
SoftBank Group was down 3.34 per cent at ¥10,505 after a report that its SoftBank Vision Fund is injecting US$800 million into UK fintech Greensill.
On Wall Street, the Dow ended up 0.4 per cent at 25,942.37. — AFP
