Japan Market falls on stronger yen, global economic woes

Headline indices of the Japan share market closed down on Friday, 24 May 2019, as investor sentiment was dented by tracking losses on Wall Street overnight amid renewed concerns over global economic uncertainties. Meanwhile, selloff pressure further fuelled by Japanese Yen appreciation against greenback as investors switched out of riskier assets and into safe havens amid heightening concerns over the future course of the global economy. At closing bell, the 225-issue Nikkei Stock Average fell 0.16%, or 33.92 points, to 21,117.22, while the broader Topix index of all First Section issues on the Tokyo Stock Exchange edged up 0.04%, or 0.63 point, at 1,541.21.

Total 23 issues of 33 subsectors of the Tokyo Stock Exchange inclined, with shares in Securities & Commodities Futures, Real Estate, Iron & Steel, Information & Communication, and Pulp & Paper issues being notable gainers, whereas Mining, Oil & Coal Products, Marine Transportation, and Electric Appliances were notable losers.

 

Washington last week effectively banned U.S. firms from doing business with Huawei, the world's largest networking gear maker, citing national security concerns. The U.S. Commerce Department said on Thursday it was proposing a new rule to impose anti-subsidy duties on products from countries that undervalue their currencies, in another move that could penalize Chinese products. China's Commerce Ministry hit back on Thursday, with its spokesman saying "if the United States wants to continue trade talks, they should show sincerity and correct their wrong actions."

Both Beijing and Washington have imposed tariffs on billions of dollars' worth of one another's goods since last year. The trade tensions have battered financial markets and dampened business sentiment. The situation escalated earlier this month as both sides hiked tariffs on their goods.

Overnight, U.S. stocks fell as investors were concerned the trade war may last much longer than anticipated. Data also showed that manufacturing activity in the world's largest economy grew at its slowest pace since September 2009 this month.

ECONOMIC NEWS: Japan overall nationwide consumer prices were up 0.9 percent on year in April, the Ministry of Internal Affairs and Communications said on Friday, up from 0.5 percent in March. Core consumer prices, which exclude volatile food prices, also advanced an annual 0.9 percent, up from 0.8 percent. Individually, prices were up for food, housing, fuel, furniture, clothing, medical care and recreation; they were down for communications and transportation. On a monthly basis, overall inflation and core CPI both were up 0.1 percent.

CURRENCY NEWS: The Japanese yen appreciated in the mid-109 range against greenback in afternoon deals in Tokyo on Friday, renewed concerns over global economic uncertainties. The dollar was quoted at 109.57-61 yen, compared with 109.55-65 yen in New York and 110.29-30 yen on Thursday in Tokyo.

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