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Japan Nikkei extends losses on growth worries

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Headline indices of the share market were lower on Wednesday, 5 December 2018, as investors continued booking profits after a dismal overnight session on Wall Street amid fears of an upcoming economic slowdown and lingering worries about trade tensions due to mounting skepticism over the U. S.-tariff truce. Total 24 issues of TSE33 issues declined, with shares in Oil & Coal Products, Insurance, Securities & Commodities Futures, Banks, Machinery, and Glass & Ceramics Productsissues being notable losers. In late afternoon trades, the 225-issue Nikkei index dropped 173.39 points, or 0.8%, at 2,862.66. The broader Topix index of all First Section issues on the declined 11.42 points, or 0.7%, to 1,637.78.

Risk aversion selloff triggered amid growing uncertainty about whether a truce struck between Chinese and US at the summit will lead to a long-term deal to ease trade tensions between the two superpowers.

Following the meeting between Trump and Xi in Argentina, there has been growing confusion about what exactly the leaders agreed to and whether a 90-day deadline for a resolution began immediately or in January.

Trump has threatened to impose tariffs worth a further $200 billion on Chinese imports unless makes it easier for US companies to do business there. officials have also struggled to explain whether had actually agreed to drop a 40% tariff on US cars as part of the deal.

The world's two largest economies seem to be providing conflicting versions of outcomes from last weekend's Summit. suggested that China has not acknowledged a 90-day deadline for reaching a trade deal and has not said it would 'immediately' buy significant farm goods from the US. This morning however reported that China said it would implement specific issues agreed on as quickly as possible.

Shares of exporters were mostly lower as the safe-haven yen strengthened against the U. S. dollar. dropped 4% and fell almost 2%. was lower by 2%, while and fell more than 1% each and was down almost 1%. was lower by almost 3% and was down almost 1%.

ECONOMIC NEWS: The latest survey from Nikkei showed that the services sector in continued to expand in November, albeit at a fractionally slower pace with a PMI score of 52.3. That's down from 52.4 in October, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction. Also, the composite index eased to 52.4 in November from 52.5 in October.

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

First Published: Wed, December 05 2018. 09:53 IST