Tokyo stocks follow Wall Street lower

The benchmark Nikkei 225 index slipped 0.27 per cent or 56.71 points to 21,073.01 in early trade while the broader Topix index was down 0.40 per cent or 6.23 points at 1,547.99. — Reuters pic
The benchmark Nikkei 225 index slipped 0.27 per cent or 56.71 points to 21,073.01 in early trade while the broader Topix index was down 0.40 per cent or 6.23 points at 1,547.99. — Reuters pic

TOKYO, June 13 — Tokyo stocks opened lower today, taking a negative lead from Wall Street amid lingering worries over the US-China trade war.

The benchmark Nikkei 225 index slipped 0.27 per cent or 56.71 points to 21,073.01 in early trade while the broader Topix index was down 0.40 per cent or 6.23 points at 1,547.99.

“Japanese stocks are likely to continue facing profit-taking, carrying over the negative tone in US stocks,” Okasan Online Securities said in a note.

But the impact of the selling would be partially eased by hopes for US interest cuts, it 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 1.71 per cent to 899.3 yen.

Heavy selling also hit the semiconductor sector. Chip-testing device maker Tokyo Electron tumbled 2.35 per cent to 15,200 yen.

Takeda Pharmaceutical fell 1.52 per cent to 3,757 yen after advisory firm Institutional Shareholder Services recommended against reappointing President and Chief Executive Christophe Weber, citing the company’s low returns on investment.

The dollar stood at 108.49 yen against 108.51 yen in New York yesterday afternoon. — AFP

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