Japan Nikkei ends edge lower

Headline indices of the Japan share market closed marginally lower after trimming early on Thursday, 16 August 2018, after the news that China and the US would hold trade talks. The news lifted investors' risk stance as it raised hopes of a potential thaw in their trade war. Local market declined in early trade as falls on Wall Street and a rise in the yen amid Turkey's financial market crisis and fears of an economic slowdown in China fanned worries about global growth. Total 29 issues out of 33 TSE index declined, with shares of Oil & Coal Products, Nonferrous Metals, Chemicals, Warehousing & Harbor Transportation Services, Wholesale Trade, Glass & Ceramics Products, and Pulp & Paper issues being notable losers. At closing bell, the benchmark Nikkei 225 index declined 0.05%, or 12.18 points, to 22,192.04. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 0.64%, or 10.88 points, to 1,687.15.

Shares of major exporters declined, weighed down by yen appreciation to lower 110-zone against greenback. Among heavyweight exporters, Sony Corp, Honda, Toyota , Canon Inc, Panasonic Corp, and Sony Corp declined in a range of 0.2-1%.

In the oil stocks, Inpex declined more than 1% and Japan Petroleum was lower by more than 3% after crude oil prices tumbled overnight.

ECONOMIC NEWS: The Ministry of Finance said that Japan posted a merchandise trade deficit of 231.2 billion yen in July 2018, following the downwardly revised 720.8 billion yen surplus in June 2018. Exports were up 3.9% on year to 6.747 trillion yen, down from 6.7% in the previous month. Imports surged an annual 14.6% to 6.978 trillion yen following the upwardly revised 2.6% gain a month earlier.

CURRENCY NEWS: The Japanese yen appreciated to lower 110 yen zone against U.S. dollar on Thursday, as demand for safe haven resumed due to worries about Turkey's financial crisis and an economic showdown in China.

OFFSHORE MARKET NEWS, US stock market closed down on Wednesday on renewed concerns about Turkey after the Turkish government announced an increase in tariffs on American cars, alcohol and cigarettes. The Dow Jones Industrial Average fell 137.51 points or 0.5% to 25,162.41 and the S&P 500 slid 21.59 points or 0.8% to 2,818.37. The Nasdaq tumbled 96.78 points or 1.2% to 7,774.12,

The major European markets also closed down on Wednesday. The French CAC 40 Index dropped 1.8%, the German DAX Index tumbled by 1.6%, and the U.K.'s FTSE 100 Index dropped 1.5%.

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