Japan Market falls on global economic concerns

Headline indices of the Japan share market closed down on Tuesday, 21 May 2019, tracking weak lead from Wall Street overnight as investors fret over the latest flare-up in the China-US trade war involving Chinese tech giant Huawei and concerns about the future course of the global economy. At closing bell, the 225-issue Nikkei Stock Average fell 0.14%, or 29.28 points, to 21,272.45, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange was down 0.30%, or 4.62 points, at 1,550.30.

Total 24 issues of 33 subsectors of the Tokyo Stock Exchange declined, with shares in Marine Transportation, Mining, Oil & Coal Products, Warehousing & Harbor Transportation Services, Insurance, and Electric Appliances issues being notable losers, whereas Rubber Products, Information & Communication, and Iron & Steel were notable gainers.

 

Shares of technology companies fell sharply after Google began to sever ties with Chinese telecoms giant Huawei amid the US-China trade war. Electronic parts maker Rohm dropped 1.16% to 6,760 yen, while chip-making equipment manufacturer Tokyo Electron closed down 1.87% at 15,420 yen.

Automakers were mixed, with Toyota down 0.50% at 6,494 yen but Honda rose 0.10% to 2,832.5 yen.

SoftBank Group rallied 3.52% to 10,705 yen after the top official at the US communications regulator on Monday announced support for the proposed $26-billion merger between Sprint and T-Mobile.

CURRENCY NEWS: The Japanese yen depreciated against the dollar on Tuesday. The dollar fetched 110.15 yen in Asian afternoon trade, against 110.04 yen in New York late Monday.

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