Business / Financial Markets | TSE DATA & REPORT

Nikkei falls back to 21,276 ahead of China-U.S. summit

JIJI

Stocks turned down Friday as investors refrained from active trading ahead of the highly anticipated summit between the leaders of the U.S. and China.

The 225-issue Nikkei average fell 62.25 points, or 0.29 percent, to end at 21,275.92 on the Tokyo Stock Exchange. On Thursday, the key market gauge gained 251.58 points.

The Topix index of all first-section issues edged down 2.13 points, or 0.14 percent, to close at 1,551.14, after gaining 18.93 points the previous day.

The Nikkei stayed in negative territory throughout the session, pressured by profit-taking, the yen’s rise against the dollar and a weak performance from Shanghai stocks.

A wait-and-see mood prevailed in the market before the meeting between U.S. President Donald Trump and Chinese counterpart Xi Jinping on Saturday on the sidelines of the Group of 20 summit in Osaka, brokers said.

“Tokyo stocks fell in a negative reaction after the sharp rise the previous day,” said Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co.

Uncertainty over U.S.-China trade talks kept buying in check, with Trump’s economic adviser Larry Kudlow denying a Thursday report in the South China Morning Post that said Washington and Beijing have tentatively agreed to another truce in their trade war, brokers said.

Considering how big the trade issue can impact the global economy, “investors had no choice but to wait and see the outcome of the Trump-Xi talks,” an official at a bank-affiliated securities firm said.

Falling issues outnumbered rising ones 1,235 to 800 on the TSE’s first section, while 113 issues were unchanged.

Volume fell to 1.151 billion shares from 1.204 billion shares on Thursday.

Oil names met with selling, with Cosmo Energy closing down 1.74 percent, JXTG down 1.33 percent and Idemitsu down 1.22 percent.

Bic Camera fell 3.29 percent following a media report that the electronics retailer posted a 14 percent year-on-year fall in consolidated operating profit for the period between September 2018 and May.

Among other major losers were air conditioner maker Daikin and drug maker Eisai.

By contrast, power suppliers attracted purchases, with Tohoku Electric ending up 3.03 percent, Shikoku Electric up 2.15 percent and Kansai Electric up 1.06 percent.

Also on the positive side were game maker Nintendo and chip-making gear manufacturer Tokyo Electron.

In index futures trading on the Osaka Exchange, the key September contract on the Nikkei average fell 40 points to end at 21,220.