Japan Nikkei falls 1%, Nissan down over 6%

Headline indices of the Japan share market were lower on Tuesday, 20 November 2018, as risk sentiments weighed by tracking weak cues from Wall Street overnight, amid lingering concerns about the outlook for the global economy along with uncertainty about the potential for a trade deal between the U.S. and China. Meanwhile stocks were also rattled as Nissan Motor shares tumbled after the arrest a day earlier of its chairman Carlos Ghosn over allegations of financial misconduct. Most of TSE33 issues declined, with technology, miscellaneous product, mining, and electric appliance-oriented issues being notable losers. In late afternoon trades, the 225-issue Nikkei index declined 211.59 points, or 1%, at 21,609.57. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 10.89 points, or 0.66%, to 1,626.72.

Nissan Motor Co was the most-traded stock by turnover and tumbled 6.5% after Nissan said Ghosn had been arrested over alleged financial misconduct and would be fired from the board this week. Nissan said an internal investigation, triggered by a tip-off from a whistleblower, had revealed that Ghosn engaged in wrongdoing including personal use of company money and under-reporting his earnings for years.

 

Mitsubishi Motors, another member of the Franco-Japanese partnership, also slid by about 6%. Mitsubishi said it would also remove Ghosn as its chairman.

Shares of technology issue declined after tech giant Apple's shares fell overnight on reports that the company slashed production orders for all three of the iPhone models that were unveiled in September. Murata Manufacturing shed 2.8%, meanwhile TDK Corp and Kyocera Corp both dropped 1.2%. v Chip-equipment makers were sold as well, with Tokyo Electron falling 1.5% and Advantest Corp sliding 1%.

CURRENCY NEWS: Japanese yen was down in the mid-112 yen zone against greenback on Tuesday, as demand for safe heaven unit resumed amid lingering concerns about the outlook for the global economy along with uncertainty about the potential for a trade deal between the U.S. and China. The dollar was quoted at 112.45-46 yen compared with 112.49-59 yen in New York and 112.74-75 yen on Monday in Tokyo. The euro, meanwhile, fetched 128.83-84 yen against 128.84-94 yen in New York and 128.61-65 yen in late Monday trade in Tokyo.

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