Tokyo Stocks Open Lower On Geopolitical Worries

Tokyo, (UrduPoint / Pakistan Point News - 26th Jun, 2019 ) :Tokyo stocks opened lower on Wednesday, extending falls on Wall Street as investors fled to safe haven assets amid US-Iran tensions and ahead of the G20 summit this week.

The benchmark Nikkei 225 index was down 0.51 percent or 108.58 points at 21,085.23 in early trade, while the broader Topix index was down 0.49 percent or 7.58 points at 1,535.91.

"Amid uncertainties in environments outside Japan, (falls in) US stocks and a higher Yen are discouraging" investors from buying, Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.

Iran said Tuesday it will further reduce its committment to a 2015 nuclear deal, in defiance of new American sanctions as US President Donald Trump warned the Islamic republic of "overwhelming" retaliation to any attack.

Tensions between Iran and the US have spiralled since last year when Trump withdrew the United States from the deal under which Tehran was to curb its nuclear programme in exchange for relief from economic sanctions.

The two arch-rivals have been locked in an escalating war of words since Iran shot down a US surveillance drone in what it said was its airspace, a claim the US vehemently denies.

Investors are looking ahead to a planned meeting at the Group of 20 later this week between Trump and Chinese leader Xi Jinping, hoping for signs of progress in resolving the two countries' trade war.

The Dollar remained low against the safe haven yen.

The greenback changed hands at 107.18 yen in early Asian trade, unchanged from the level in New York late Tuesday and up slightly from 106.99 yen on Tuesday afternoon Tokyo time.

In Tokyo, airlines were among losers, with ANA Holdings down 0.39 percent at 3,531 yen and Japan Airlines down 0.75 percent at 3,417 yen.

Automakers were also lower, with Honda sliding 1.10 percent to 2,735 yen, Toyota trading down 0.28 percent at 6,632 yen and Nissan off 0.31 percent at 761.9 yen.

Mitsubishi Heavy Industries was down 1.08 percent at 4,758 yen after Canadian aerospace firm Bombardier said it is effectively exiting the commercial airline manufacturing sector with the sale of its CRJ Series regional jet programme to the Japanese firm for $550 million.

On Wall Street, the Dow ended down 0.7 percent at 26,548.22.