Japan Nikkei falls on profit taking, stronger yen

Japan share market were lower on Wednesday, 03 October 2018, as investors moved to take profits after the Nikkei index hit a fresh 27-year high earlier this week. Meanwhile, selloff pressure was fuelled by following the mixed cues overnight from Wall Street and on a stronger yen amid worries about rising U.S.-China tensions. Around late afternoon trade, the 225-issue Nikkei index was down 13.41 points, or 0.06%, at 24,257.21. The broader Topix index of all First Section issues on the Tokyo Stock Exchange fell 3.09 points, or 0.2%, to 1,820.94.

Shares of major exporters were mixed amid a slightly stronger yen. Sony lost almost 2%, while Panasonic and Mitsubishi Electric declined more than 1% each. Canon was down 1%.

 

On the economic front, the latest survey from Nikkei revealed that the services sector in Japan continued to expand in September, but at a slower pace, with a two-year low services PMI score of 50.2. That's down from 51.5 in August, although it remains barely above the boom-or-bust line of 50 that separates expansion from contraction.

CURRENCY NEWS: Japanese yen traded stronger in the upper 113 yen zone against greenback on Wednesday, as safe heaven demand resumed amid lingering worries about rising U.S.-China tensions. The dollar was quoted at 113.58-59 yen compared with 113.58-68 yen in New York and 113.81-83 yen on Tuesday in Tokyo. The euro, meanwhile, fetched 131.20-24 yen against 131.23-33 yen in New York and 131.37-41 yen in late Tuesday afternoon trade in Tokyo.

OFFSHORE MARKET NEWS, US stock market closed mixed on Tuesday, amid lingering uncertainty about trade after President Donald Trump announced a new trade deal between the U.S., Mexico, and Canada to replace the North American Free Trade Agreement. The Dow Jones Industrial Average surged by 122.73 points or 0.5% to 26,773.94. The S&P 500 edged down 1.16 points or less than a tenth of a% to 2,923.43, while the Nasdaq Composite fell 37.76 points or 0.5% to 7,999.55.

The major European markets ended lower on Tuesday. The German DAX Index and the U.K.'s FTSE 100 Index fell by 0.4% and 0.3%, respectively. The French CAC 40 Index dropped by 0.7%.

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