Tokyo Stocks Open Sharply Down After China Unveils Tariffs

Tokyo stocks opened sharply lower on Tuesday, extending losses on global markets as the US-China trade war escalated and pushed the yen higher

Tokyo, (UrduPoint / Pakistan Point News - 14th May, 2019 ):Tokyo stocks opened sharply lower on Tuesday, extending losses on global markets as the US-China trade war escalated and pushed the yen higher.

The benchmark Nikkei 225 index lost 1.78 percent or 377.19 points to 20,814.09 in early trade, while the broader Topix index was down 1.77 percent, or 27.34 points, at 1,513.80.

Beijing said Monday it would raise tariffs on $60 billion worth of US goods from June 1, in retaliation for the latest round of US tariff hikes and Washington's plans to target almost all Chinese imports.

On Wall Street, the Dow ended down 2.4 percent at 25,324.99, battered by China's decision.

Following the falls in New York, "Japanese shares are seen dominated by sell orders, and appreciation of the yen is also weighing on the upside" of share prices, Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.

Investors are "worried that the intensifying trade war will have a negative impact on the global economy", he said.

The dollar traded at 109.17 yen in early Asian trade, down from 109.30 yen in New York and 109.70 yen in Tokyo on Monday.

In Tokyo, China-linked shares were among the losers, with industrial robot manufacturer Fanuc trading down 1.52 percent at 18,755 yen and electronic parts maker Rohm down 4.29 percent at 6,910 yen.

Sharp dived 4.00 percent to 1,006 yen and chip-testing equipment maker Advantest dropped 2.09 percent to 2,799 yen.

SoftBank Group plummeted 5.58 percent to 9,886 yen again after Uber continued to slide after a disappointing IPO. SoftBank Group has a 16 percent stake in the ride-hailing firm.