Japan share markets were closed during the 10-day Golden Week string of national holidays through Monday (27 April 2019 to 6 May 2019) to celebrate the enthronement of the country's Crown Prince Naruhito.
Exporters were lower, with China-linked shares being heavily sold on yen appreciation against greenback after announcement by U.S. President Donald Trump that tariffs would be raised on Chinese imports. A higher yen against the dollar in general weighs on Japanese exporters because their goods are more expensive in foreign markets while their repatriated profits shrink. Trump said Washington would raise duties on $200 billion of Chinese goods to 25% from 10% on Friday, accusing Beijing of reneging on commitments it had agreed to in trade deal negotiations. Fanuc dropped 2.4% and Hitachi Construction fell 5%.
Shares of technology issues tumbled amid worries about global growth and a sluggish outlook for earnings in the current fiscal year ending March 2020. Tokyo Electron fell 1.4% while Murata Manufacturing dived 11.2%. Chip-testing equipment maker Advantest was down 3% after its profit forecasts missed analyst estimates.
Sony rallied 5.4% after it said its annual profits had climbed to record highs for the second consecutive year thanks to a robust performance by its entertainment business.
CURRENCY NEWS: The Japanese yen appreciated against the dollar on Tuesday, as nervous investors seek safe-haven assets on renewed worries over US-China trade war and global economic uncertainties after US President Donald Trump dramatically increased pressure on China to reach a trade deal by announcing he will hike tariffs on $200 billion worth of Chinese goods this week and target hundreds of billions more soon. The US dollar traded at 110.73 yen in Asian trade, down slightly from 110.87 yen in New York on Monday but lower than 111.67 yen in Tokyo before 10 days of holidays.
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