Tokyo stocks close lower after Wall Street losses

A man is reflected on an electronic board showing a graph analyzing recent change of Nikkei stock index outside a brokerage in Tokyo. — Reuters pic
A man is reflected on an electronic board showing a graph analyzing recent change of Nikkei stock index outside a brokerage in Tokyo. — Reuters pic

TOKYO, June 13 — Tokyo stocks closed lower today, taking a negative lead from Wall Street amid lingering worries over the US-China trade war, while concerns over Hong Kong protests also weighed on the market.

The benchmark Nikkei 225 index slipped 0.46 per cent or 97.72 points to end at 21,032.00 while the broader Topix index lost 0.82 per cent or 12.72 points at 1,541.50.

“Japanese stocks fell, carrying over the negative tone in US stocks,” Okasan Online Securities said in a note.

“The yen strengthened against the dollar and the losses of Hong Kong shares weighed on the market,” it said.

The dollar traded at ¥108.35 (RM4.17) against ¥108.51 in New York yesterday afternoon.

Hong Kong’s Hang Seng Index was down after yesterday’s demonstrations against the planned extradition law, which many fear will entangle people in China’s courts and hammer the city’s reputation as an international business hub.

But the impact of the selling was partially eased by hopes for US interest cuts, Okasan said, with the Federal Reserve set to hold a policy meeting next week.

Wall Street stocks sagged for a second straight session yesterday, with petroleum-linked shares sinking with oil prices, and banks falling on worries over economic growth.

Concerns over the trade war were lingering though US President Donald Trump said he had “a feeling that we’re going to make a deal with China”.

He expects to meet President Xi Jinping at a G20 summit in Japan later this month.

Energy companies fell on lower oil prices, with Inpex dropping 1.42 per cent to ¥901.9.

Heavy selling also hit the semiconductor sector. Chip-testing device maker Tokyo Electron tumbled 4.20 per cent to ¥14,910.

Takeda Pharmaceutical fell 1.44 per cent to ¥3,760 after advisory firm Institutional Shareholder Services recommended against reappointing President and Chief Executive Christophe Weber, citing the company’s low returns on investment. — AFP

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