Japan Nikkei falls on typhoon concerns, trade tensions

Japan share market finished session lower on Wednesday, 05 September 2018, as risk sentiments remained weak amid continued worries about trade conflicts and concerns over the costs related to the damage caused by the country's worst Typhoon Jebi in 25 years. Investors were also eyeing the latest in the ongoing spat between the US and Canada after President Donald Trump again threatened to leave Canada out of a revamped North American Free Trade Agreement. Total 29 issues out of 33 TSE index declined, with shares of Information & Communication, Real Estate, Chemicals, Marine Transportation, Electric Power & Gas, Air Transportation, and Insurance issues being notable losers. At closing bell, the 225-issue Nikkei Stock Average lost 116.07 points, or 0.51%, to 22,580.83. The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, lost 13.28 points, or 0.77%, to finish at 1,704.96.

Typhoon Jebi, the most powerful storm to hit Japan in 25 years, rammed through western Japan, killing at least nine people and briefly submerging a large part of Kansai Airport, which is built on a man-made island near Osaka.

 

Aviation and tourism related stocks declined after Typhoon Jebi briefly submerged a large part of Kansai Airport, which is built on a man-made island near Osaka. If the airport cannot be used for some time, that is going to be a big blow to the shares that have benefited from inbound tourists. ANA Holdings and Japan Airlines were down 1.8% and 0.5% respectively. Shiseido fell 4.2% while Kose dropped 6.7%. Pola Orbis Holdings and Fancl Corp were down 4.9% and 9.7% respectively.

Shares of exporters such as automakers and tech companies were lower. Toyota was down 0.8% after it announced it was recalling over a million hybrid vehicles because of a fire risk. Construction machine maker Komatsu dropped 4% and industrial robots maker Fanuc was down 0.7% Canon was down almost 1%, Sony was lower by 0.5% and Mitsubishi Electric fell 0.2%.

CURRENCY NEWS: Japanese yen was little changed against greenback. The dollar fetched 111.48 yen in Asian trade, against 111.45 yen in New York late Tuesday.

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