Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Japan shares fall for 4th straight day as U.S.-China tensions flare

Published 05/15/2020, 12:01 PM
Updated 05/15/2020, 12:10 PM
© Reuters.

© Reuters.

SYDNEY, May 15 (Reuters) - Tokyo shares dropped for a fourth
straight session on Friday on concerns about worsening
U.S.-China relations and as investors booked profits ahead of
data expected to show that Japan's economy shrank for a second
straight quarter.
The benchmark Nikkei average .N225 dipped 0.3% to
19,854.03 by the midday break, with real estate and other
defensive sectors leading the losses.
For the week, the Nikkei was down 1.6%, poised for its first
weekly decline in three.
U.S. President Donald Trump on Thursday said he was very
disappointed with China's failure to contain the coronavirus
disease and that the pandemic had cast a pall over his January
trade deal with Beijing. Trump suggested he could even cut ties
with China. E-Mini futures for the S&P 500 ESc1 , which were last
quoted down 0.4% in Asian trade, further pressured Tokyo shares.
The broader Topix .TOPX fell 0.3% to 1,441.96 by the
recess, with two-thirds of the 33 sector sub-indexes on the
Tokyo exchange trading lower.
Defensive real estate .IRLTY.T , fish and forest .IFISH.T
and foods .IFOOD.T were the three worst-performing sector
subindexes on the main bourse.
Mitsubishi Estate Co Ltd 8802.T tumbled 8.8% after the
company cut its full-year dividend outlook and forecast a 25.9%
fall in net profit for this business year to March 2021.
Traders said some profit-taking also weighed on the market
before the release of Japan's gross domestic product (GDP) data
for the January-March quarter, due on Monday.
Japan's economy likely shrank for a second straight quarter
in the first three months of this year, a Reuters poll showed,
meeting the technical definition of recession as the pandemic
wiped out consumption and business activity. Bucking the overall weakness, semiconductor-related
companies were in demand following a 2.8% gain overnight in the
U.S. Philadelphia semiconductor index .SOX .
Chipmaking gear manufacturer Tokyo Electron Ltd 8035.T
rose 1.2% and test device maker Advantest Corp 6857.T climbed
1.4%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.