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Tokyo stocks open lower on fears global economy is slowing

WT24 Desk

TOKYO – Tokyo stocks opened lower on Wednesday on fears that the global economy may be slowing, after US data pointed to weakness in the manufacturing sector, AFP reports.

The benchmark Nikkei 225 index was down 0.19 percent or 40.07 points at
20,585.09 in early trade, while the broader Topix index was down 0.32 percent or 4.77 points at 1,506.02.

“Japanese investors are reacting to a trend in the US market and the US
manufacturing data,” Mizuho Securities said in a note to clients.

“A wait-and-see attitude is seen dominating the market” it added.

Wall Street stocks tumbled Tuesday as new tariffs in the US-China trade
war took effect, while US data suggested weakness in the manufacturing

Washington and Beijing imposed new levies on September 1, with the US now levelling 15 percent tariffs on an assortment of consumer goods and China responding with its own duties.

Meanwhile, “against expectations for an unchanged outcome, the US ISM
manufacturing index contracted in August clipping the wings of a rising US
dollar, (and) also dragging equities,” Rodrigo Catril, senior strategist at
National Australia Bank, said in a note.

The dollar fetched 105.86 yen in early Asian trade, against 105.94 yen in
New York.

In Tokyo, losses were led by exporters, with the auto giant Toyota sliding
0.68 percent to 6,957 yen and its rival Nissan trading down 1.20 percent at
648.4 yen.

Some electronics were also lower, with Panasonic trading off 1.17 percent
at 809.7 yen and Sharp down 0.80 percent at 1,111 yen.

On Wall Street, the Dow ended down 1.1 percent at 26,118.02.

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