Tokyo stocks retreat on Wall Street plunge, stronger yen

04-Dec-2019 Intellasia | JapanNews | 6:02 AM Print This Post

Tokyo stocks pulled back into negative territory Tuesday in the wake of a Wall Street sell-off and the yen’s strengthening against the dollar amid growing concerns over the US economy.

The Nikkei average of 225 blue chips listed on the Tokyo Stock Exchange fell 149.69 points, or0.64%, to end at 23,379.81, after advancing 235.59 points on Monday.

The TOPIX index of all TSE First Section issues finished down 7.76 points, or0.45%, at 1,706.73, following a 15.13-point rise the previous day.

The Tokyo market took a dive right after the opening bell and sank deeper, forcing the Nikkei average to suffer a loss of some 340 points around mid-morning.

Sentiment was dampened by tumbles in all three major US market indicators including the Dow Jones industrial average on Monday following the Institute for Supply Management’s release of a dismal US manufacturing index reading for November, brokers said.

Tokyo stocks were hit as well by anxieties over the state of the US economy, they noted.

Both the Nikkei and TOPIX indexes cut their losses thanks to “buy the dip” moves and buybacks later in the morning and resisted dropping further in the afternoon helped by buying stemming from Chinese stocks’ resilience.

Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc., pointed out that investors’ disappointment at the key US manufacturing index, which indicated a deepening production slump, was big.

“Players were expecting an improvement in the ISM index after seeing signs of a pickup in the Chinese economy shown by the latest data from Beijing,” he said.

On the First Section, falling issues far outnumbered rising ones 1,540 to 551 while 66 issues were unchanged.


Category: Japan

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