Tokyo stocks close down ahead of G20

Market sentiment was also depressed by news reports that US President Donald Trump was privately considering withdrawing from the US-Japan security treaty. — Reuters pic
Market sentiment was also depressed by news reports that US President Donald Trump was privately considering withdrawing from the US-Japan security treaty. — Reuters pic

TOKYO, June 25 — Tokyo stocks fell today on a strong yen with all eyes on a highly anticipated US-China meeting at the Group of 20 summit later this week.

The benchmark Nikkei 225 index lost 0.43 per cent, or 92.18 points, at 21,193.81, while the broader Topix index was down 0.27 per cent, or 4.25 points, at 1,543.49.

“The yen is expected to stay strong for now as the dollar is losing ground due to expectations of a US rate cut,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities Co Ltd.

Market sentiment was also depressed by news reports that US President Donald Trump was privately considering withdrawing from the US-Japan security treaty.

“The news spread at the lunch break and triggered fresh selling momentum,” Horiuchi told AFP.

Dealers were in a wait-and-see mood ahead of the US-China summit meeting on the sidelines of the G20 summit starting later this week in Osaka, analysts said.

“It’s hard to trade actively ahead of a US-China summit,” which is expected to take place on Saturday, Horiuchi said.

“Shares are expected to be rangebound for the rest of the week,” he added.

The dollar fetched ¥106.99 (RM4.41) in Asian afternoon trade, against ¥107.29 in New York late yesterday.

In Tokyo, Nissan was down 0.28 per cent at ¥764.3 as its shareholders approved an overhaul intended to strengthen governance at the crisis-hit Japanese automaker.

Its rival Toyota lost 0.62 per cent to ¥6,651 and Honda was down 0.71 per cent at ¥2,765.5.

Market heavyweight and Uniqlo casual wear operator Fast Retailing fell 0.66 per cent to ¥66,090. — AFP

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