Nikkei underperforms due to concerns of extended trade dispute
TOKYO- Japan’s Nikkei recorded lowest data in two weeks on Wednesday as market anxiety pressed due to US President Donald Trump’s remarks, while firmer yen dampened investors’ appetite.
The Nikkei 225 index shed a total of 1.24% to 23, 089.21 as it tailed under its 25-day moving average of 23,253.
“In some ways, I like the idea of waiting until after the election for the China deal. But they want to make a deal now, and we’ll see whether or not the deal’s going to be right; it’s got to be right,” Trump stated in London last Tuesday.
The yen firmed up with 1% in the past two days. In line, exporters’ shares including electronic parts Maker Murata Manufacturing sunk down with 2.4% loss as industrial robot manufacturer Fanuc slid with 1.6% loss and Honda Motor with 1.1% setback.
Astellas Pharma completely lost its momentum with 2.6% setback following acquisition of US drugmaker Audentes Therapeutics Inc for 110% premium.
Fast retailing declined with 4.9% following Uniqlo casual clothing chain’s report of frail domestic sales in November, cutting off 110 points or 0.5% from Nikkei’s overall gains.
Broader Topix cut 0.55% to 1,697.37 and was deemed a more acceptable session than other index peers losing 15%.
31% of the complete rundown of shares on the Tokyo Exchange’s main board increased with domestic-oriented shares advancing the most.
Toiletry goods provider Kao Corp edged up with 1.5% gains while majority of utility companies also advanced with Tokyo Electric Power, Chubu Electric Power, and Osaka Gas acquiring 2.3%, 1.2% and 0.8% respective gains.