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Japan Nikkei extends losses on stronger yen

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Headline shares of the Japan share market declined for third session in row on Wednesday, 07 August 2019, as a comparatively firm yen against the U. S. dollar and escalation in tensions between the US and China soured the market mood. Most of Topix index industry category retreated into negative territory, with Metal Products, Fishery, Agriculture & Forestry, Marine Transportation, Iron & Steel, Textiles & Apparels, and Nonferrous Metals issues being notable losers. Around late afternoon, the 225-issue Nikkei Stock Average dropped 167.75 points, or 0.8%, to 20,417.56, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 7.29 points, or 0.5%, at 1,491.94.

Traders remain on tenterhooks after Monday's moves, which included the biggest one-day plunge in global equities since February 2018. The escalating dispute between the world's largest economies is rattling investors unnerved about a global economy that was already slowing.

U. S.

President Donald Trump dismissed fears of a protracted trade war with China on Tuesday, but Beijing has sent strong warnings that labeling it a currency manipulator would have severe consequences for the global financial order.

China has said the recent yuan depreciation was decided by the market, not Beijing, and denied the Trump administration's accusation designating the country a currency manipulator. Meanwhile, White House Chief Economic Adviser Larry Kudlow said the U. S. remained committed to more trade talks with Chinese officials in September.

CURRENCY NEWS: The yen strengthened against the US dollar on Wednesday, as the yen held up on safe-haven buying amid worries about the trade war between the world's two largest economies. A strong yen clouds the outlook for Japanese exporters as it reduces their profits when they are repatriated. The U. S. dollar changed hands in the lower 106 yen zone in late afternoon deals in Tokyo on Wednesday, marginally lower than its levels in New York overnight. Around late afternoon, the dollar was quoted at 106.30-31 yen compared with 106.42-52 yen in New York and 106.37-38 yen on Tuesday in Tokyo.

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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, August 07 2019. 09:08 IST
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