TOKYO, Japan (AFP) — Tokyo stocks closed lower on Monday partially due to a strong yen, while investors braced for corporate results by major companies.
The benchmark Nikkei 225 index slipped 0.60 percent, or 124.56 points, to 20,649.00 while the broader Topix index was down 0.68 percent, or 10.59 points, at 1,555.51.
“We have very few trading elements today but a relatively strong yen is among the negative factors,” said Daiwa Securities senior technical analyst Hikaru Sato.
World stocks rose Friday, ending a shaky week on a positive note as investors looked ahead to crucial trade talks between China and the United States, and responded to solid corporate earnings reports.
But “the biggest focus this week will be Japanese and US corporate results” as the earnings season gets into full swing, Okasan Online Securities said in a note.
Stock prices have recently been on a recovery path but “the buyback steam will come to a halt unless companies wipe out uncertainty over earnings”, it said.
Sato also said: “Investors want to confirm the actual impact of negative factors, including the US-China trade dispute, on corporate earnings.”
US President Donald Trump announced he had agreed to reopen the federal government after public services started to buckle — but markets appeared little moved.
The dollar was trading at 109.30 yen in Asian afternoon trade, down from 109.48 yen in New York Friday afternoon.
In individual stocks trade, Nissan lost 0.79 percent to 920.3 yen after it said the US Securities and Exchange Commission is investigating the firm over executive pay.
Toyota dropped 1.10 percent to 6,689 yen with Honda down 1.00 percent at 3,250 yen.
Sony bucked the overall downtrend. It rose 0.92 percent to 5,373 yen after a weekend report by the business daily Nikkei that the company would open US and European development centers for image sensors, a key product for smartphones.
Takeda rose 0.20 percent to 4,509 yen on reports that the pharmaceutical group would sell its Osaka head office and other neighboring buildings to a US fund to help reduce debts incurred for its $60-billion takeover of Irish pharmaceuticals firm Shire.
© Agence France-Presse
