TOKYO, Japan (AFP) — Tokyo shares closed lower on Friday, following a global market slide stemming from the lowered European economic outlook as well as receding hopes for smooth progress in US-China trade talks.
The benchmark Nikkei 225 index dropped 2.01 percent or 418.11 points to end at 20,333.17. Over the week, it was down 2.19 percent.
The broader Topix index lost 1.89 percent or 29.63 points to 1,539.40. Over the week, it was down 1.61 percent.
“Overall Tokyo shares were down due to concerns on the US-China trade dispute,” Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.
Ito added that investors were cautious because of overnight falls of US and European shares.
Investors also grew wary after the EU Commission said it expected growth of 1.3 percent in the eurozone this year, a significant cut from the 1.9 percent it predicted in November, citing risks including Brexit fears, Italian economic woes and the global trade war.
In Japan, players adjusted their positions and locked in profits ahead of a three-day weekend, Okasan added.
The Tokyo market will close Monday for a national holiday. Normal trading will resume Tuesday.
In the forex market, the dollar stood at 109.68 yen, slightly lower than the 109.83 yen seen in New York Thursday.
Shortly before the market opened, the Japanese government announced that the nation’s household spending in December picked up 0.1 percent from a year earlier, marking the first increase in four months.
Among major shares, Sony bucked the trend, soaring 4.09 percent to 4,906 yen after announcing a plan for share buybacks worth up to 100 billion yen ($910 million).
However, as the US-China trade dispute lingers, shares related to Chinese demand faced pressure.
Industrial robot producer Fanuc Corp. fell 3.99 percent to 18,045 yen. Hitachi Construction Machinery dropped 4.36 percent to 2,652 yen.
Toyota was down 1.91 percent to 6,449 yen while Panasonic fell 2.81 percent to 1,002.5.
© Agence France-Presse