NIKKEI HITS 3-WEEK LOW DUE TO US-CHINA TRADE TRUCE; TECH STOCKS INCH DOWN
TOKYO, Nov 21 – Japanese stocks suffered in three consecutive weeks as reemerging concerns about Sino-US trade pact signing and recently passed US legislation on Hong Kong directly impacted market condition.
Nikkei shares shed 1.2% to 22,872.03, recording its lowest point since Nov. 1.as it was potentially set to hit its worst drop in seven weeks.
Overnight, Wall Street’s three primary indexes underperformed from reports citing that the completion and signing of US-China trade pact will not happen any time soon and is posed to be completed up until next year.
US House of Representatives’ recent legislation supporting Hong Kong protesters heavily contributed to tensions between the world’s two biggest economies.
Analysts disclosed that a series of profit acquisition set in after Nikkei underperformed below the psychological point at 23,000 and the key 25-day moving average, landed at 23, 009 in the earlier session.
Semiconductor sector, a consistent gainer from previous sessions, inched lower with Tokyo Electron shedding 4.0%, Advantest losing 3.1%, and Screen Holdings with 5.3% setback.
Nikkei heavyweight Softbank Group plummeted with 2.3% following reports from media that the tech conglomerate is about to receive about 300 billion yen ($2.8 billion) from Japanese banks.
The broader Topix index suffered with 1.0% at 1,674.62, with all of its 33 sub-sectors in an unstable state.
Records from BOJ showed that central bank purchased exchange traded funds (ETFs) for the first time in six weeks not including its daily purchases of ETFs to back up capital spendings.