Tokyo stocks open lower on global growth worries

TOKYO: Tokyo stocks opened lower on Thursday, extending a two-day losing streak as investor sentiment remained slack on worries over the global economy.

The benchmark Nikkei 225 index lost 0.63%, or 135.79 points, to 21,461.02 in early trade while the broader Topix index was down 0.59%, or 9.46 points, at 1,605.79.

“Selling will likely lead trade on the Japanese as investors were discouraged by continued falls in and concerns about a slowdown in the global economy,“ Okasan Online Securities chief strategist Yoshihiro Ito said in a note.

stocks closed lower on Wednesday on the dimming outlook for economic growth and questions over US- trade talks.

Sentiment was dented by the Organisation for Economic Cooperation and Development on Wednesday, which cut its forecast for 2019 to 3.3% from the prior 3.5%.

“High policy uncertainty, ongoing trade tensions and a further erosion of business and consumer confidence are all contributing to the slowdown,“ the OECD said in an interim version of its Economic Outlook.

In individual stocks trade in Tokyo on Thursday, Nissan fell 1.25% to 926.4 yen on concerns over model change-overs and its marketing strategy.

“The sun will rise again but it will take time,“ SMBC Nikko Securities said in a note as it lowered its investment guidance on the automaker.

Microchipmaker Renesas tumbled 14.61% to 584 yen as the Nikkei economic daily reported the company has temporarily halted production at several plants as demand flags.

Mizuho Financial Group fell 1.59% to 172.4 yen after the major bank slashed its annual profit estimate.

The dollar was trading at 111.63 yen against 111.76 yen in New York Wednesday afternoon. — AFP

Source: The Sun Daily

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