Tokyo stocks turned down on Friday, following an overnight fall in U.S. equities and a stronger yen amid fresh concerns over U.S.-China trade negotiations.
The 225-issue Nikkei average fell 76.27 points, or 0.33 percent, to end at 22,850.77 on the Tokyo Stock Exchange. On Thursday, the key market gauge rose 83.92 points.
The Topix index of all issues listed on the TSE’s first section inched down 0.51 point, or 0.03 percent, to 1,666.50, after edging up 1.11 points the previous day.
A wave of selling hit stocks from the outset of Friday’s trading, after sentiment on Wall Street worsened on a media report that said Chinese officials expressed doubts over striking a comprehensive long-term trade deal with the United States, brokers said.
The Nikkei sank 221 points shortly after the opening bell, but the market gradually trimmed its losses on buying of shares backed by strong earnings, including electronic parts producer Murata Manufacturing and game maker Nintendo, brokers said.
“After the recent bullish run amid calm in U.S.-China trade, investors took the negative news as a cue to take profits,” an official of a Japanese bank said.
“A wait-and-see mood grew in the afternoon ahead of the release of the U.S. government’s jobs data (for October) and a three-day weekend in Japan,” said Tomoaki Fujii, head of the investment research division at Akatsuki Securities Inc. The Tokyo market will be closed on Monday as a substitute holiday for Culture Day.
Falling issues outnumbered rising ones 1,283 to 801 on the TSE’s first section, while 70 issues were unchanged.
Volume fell to 1.256 billion shares from Thursday’s 1.462 billion shares.
China-linked names met with selling amid renewed uncertainty over U.S.-China trade friction, including construction machinery maker Komatsu and industrial robot producer Fanuc.
Oil issues such as JXTG and Idemitsu fell due to a drop in crude oil prices.
Among other major losers were technology firm Kyocera and drugmaker Daiichi Sankyo.
On the other hand, Nintendo surged 7.46 percent after announcing a better than expected operating profit for the April-September half.
Murata Manufacturing advanced 3.24 percent thanks to an upward revision to its consolidated operating profit forecast for the year to March 2020.
Also on the positive side were Uniqlo operator Fast Retailing and mobile phone carrier KDDI.
In index futures trading on the Osaka Exchange, the key December contract on the Nikkei average dropped 100 points to end at 22,850.