You are here: Home » News-CM » International » Market Report
Business Standard

Japan Nikkei extends losses for sixth day

Capital Market 

Headline indices of the Japan share market fell on Friday, 07 September 2018, extending its losing streak to a sixth day, as risk aversion selloff continued on following falls in U. S. and other overseas equities overnight on fears that President Trump could announce tariffs on $200 billion in Chinese imports as early as Friday after a public comment period on the administration's plan ended. Risk sentiments were also hurt by yen appreciation to mid-110 yen level against greenback, concerns of economic damage from powerful earthquake in northern Japan on the heels of a strong typhoon ravaging the archipelago recently, and mounting fears about contagion from a handful of struggling emerging economies. Total 25 issues out of 33 TSE index declined, with shares of Oil & Coal Products, Electric Appliances, Metal Products, Mining, Nonferrous Metals, and Machinery issues being notable losers, while Electric Power & Gas and Land Transportation issues were notable gainers. In late afternoon trade, the 225-issue Nikkei Stock Average declined 278.80 points, or 1.24%, to 22,209.14. The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, lost 16.47 points, or 0.97%, to finish at 1,675.94.

The 6.7-magnitude quake, which has ravaged Hokkaido leaving at least 9 people dead, 300 injured and more than 30 missing, sparked investor concerns over the economic impact. The quake in Hokkaido came on the heels of a powerful typhoon that swept through Japan just days earlier, leaving a severe amount of damage particularly in western regions, with Kansai International Airport likely to be paralyzed for up to a week

Turmoil in Argentina and Turkey, as their currencies continue to sink on deteriorating confidence, is dragging on the global market as investors fear a spillover effect on other healthier emerging markets and beyond.

On the trade front, the U.

S. and Canada continued high-stakes negotiations in the effort to revamp the North American Free Trade Agreement, which President Donald Trump said he is prepared to move forward with even without Canada's participation. Those trade tensions come amid the start of a public comment on the Trump administration's plan to impose tariffs on an additional $200 billion of Chinese goods. Reports indicated that Trump could impose the tariffs as soon as this week.

CURRENCY NEWS: Japanese yen appreciated in the mid-110 yen level against greenback. The US dollar fetched 110.42 yen in Asian trade, up from 110.86 yen in New York in New York late Thursday.

OFFSHORE MARKET NEWS, US stock market closed softer for a third session on Thursday, on mounting concerns about contagion from a handful of struggling emerging economies on top of unresolved trade tension. The Dow Jones Industrial Average inched up 20.88 points or 0.1% to 25,995.87, the Nasdaq slumped 72.45 points or 0.9% to 7,922.73 and the S&P 500 fell 10.55 points or 0.4% at 2,878.05.

The major European stock markets ended down on Thursday. The French CAC 40 Index fell by 0.3%, the German DAX Index and the U. K.'s FTSE 100 Index slid by 0.7% and 0.9%, respectively.

Powered by Capital Market - Live News

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, September 07 2018. 09:52 IST