Business / Financial Markets | TSE DATA & REPORT

Nikkei snaps eight-session winning streak amid U.S.-China trade jitters

JIJI

Tokyo stocks edged down Friday as the benchmark Nikkei average snapped an eight-session winning streak.

The 225-issue Nikkei average lost 4.35 points, or 0.02 percent, to end at 22,865.15 on the Tokyo Stock Exchange. On Thursday, the key market gauge rose 21.28 points.

The Topix index of all first-section issues fell 3.79 points, or 0.22 percent, o close at 1,735.35, after edging down 0.46 point the previous day.

The market got off to a weaker start after investor sentiment was battered by a stronger yen prompted by a U.S. media report that President Donald Trump has shown a positive stance toward imposing tariffs planned for $200 billion worth of Chinese products, brokers said.

Drops in emerging-markets currencies, including the Turkish lira and Argentine peso, also helped the yen attract safe-haven buying.

But both indexes later recouped most of their losses after receiving support from buying on dips, brokers said.

“The Nikkei lacked the power to rise above 23,000, but investor sentiment remained strong,” Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., said, pointing to the key yardstick’s eight-session winning streak through Thursday.

Some investors might have taken the stronger-than-expected results of China’s manufacturing purchasing managers’ survey for August, released Friday morning, as a cue to buy, Ota said.

The market’s downside was supported by buybacks apparently by foreign investors, said Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co.

Falling issues outnumbered rising ones 1,253 to 736 on the TSE’s first section while 115 issues were unchanged.

Volume fell to 1.303 billion shares from 1.399 billion shares on Thursday.

China-linked names met with selling following rekindled concerns about U.S.-China trade friction. Major losers included construction machinery maker Komatsu, industrial robot producer Fanuc and industrial equipment manufacturer Yaskawa Electric.

Financial issues were downbeat after Trump again indicated his displeasure with the U.S. Federal Reserve’s rate hikes. They included mega-banks Mitsubishi UFJ and Sumitomo Mitsui, insurer Tokio Marine and securities firm Nomura.

Among other notable losers were automakers Toyota and Honda, as well as Suruga Bank.

On the other hand, H.I.S. jumped 5.34 percent a day after the major travel agency announced strong consolidated earnings for November 2017 to last July.

Also higher were game makers Square Enix and Nintendo, daily goods manufacturer Kao and drugmaker Eisai.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average sagged 10 points to end at 22,860.