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▼ Nikkei Falls In 2018 Final Session, Marking 1st Annual Loss In 7 Years
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TOKYO - Tokyo stocks ended slightly lower Friday, the final trading day of the year, with the benchmark Nikkei index losing 12.1 percent in 2018 for its first yearly loss in seven years amid growing concerns about a global economic slowdown following the U.S.-China trade war.
The 225-issue Nikkei Stock Average ended down 62.85 points, or 0.31 percent, from Thursday at 20,014.77. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 7.54 points, or 0.50 percent, lower at 1,494.09.
Decliners were led by pharmaceutical, retail, and oil and coal product issues.
The Nikkei ended this year lower for the first time since 2011 when it slumped 17.3 percent, and it marked the first retreat since Prime Minister Shinzo Abe took office in 2012.
The Nikkei started the year above 23,000 and hit a 27-year high above 24,000 in October. The key index, however, came under strong pressure toward the year-end in line with sharp declines on Wall Street, tumbling below the psychologically important 20,000 mark on Tuesday for the first time in more than a year and briefly dipping below the 19,000 threshold the following day.
Brokers said the Japanese stock market maintained its firmness throughout most of the year, with investor sentiment underpinned by economic recovery in the United States and robust corporate earnings in the United States and Japan.
The recent turbulence reflected investors having overly priced in gloomier prospects for the world economy due largely to the trade conflict between the United States and China that made the market highly sensitive to negative cues, brokers said.
"The market was initially supported by Japanese firms' robust earnings, but at the end of the year investors became highly responsive to unfavorable news such as remarks by U.S. President Donald Trump" on issues such as replacing his senior aides, said Maki Sawada, vice president of the investment research and investor services department at Nomura Securities Co.
On Friday, the Nikkei edged down as investors locked in profits after it surged nearly 4 percent, or more than 750 points, on Thursday to post its largest points gain in about two years.
"Investors took profits ahead of the New Year holidays," said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
The Tokyo stock market will reopen Jan 4.
Market players grew jittery on Thursday's reports that Trump is considering signing an executive order as early as January to bar U.S. companies from buying equipment from Huawei Technologies Co and ZTE Corp.
"The report made investors concerned that relations between the United States and China will further deteriorate" and that they will find it harder to reach any agreement in trade talks during the 90-day ceasefire period, Sawada added.
On the First Section, declining issues outnumbered advancers 1,166 to 891, while 72 ended the day unchanged.
Oil and coal product issues met selling following their steep rises the previous day.
Oil refiner Idemitsu Kosan fell 50 yen, or 1.4 percent, to 3,610 yen while rival JXTG Holdings slid 14.70 yen, or 2.5 percent, to 576.70 yen.
Retailers were dragged down after J. Front Retailing reported falling sales and profits in the nine months through November.
The department store operator plunged 124 yen, or 9.0 percent, to 1,260 yen. Its peer Takashimaya fell 52 yen, or 3.6 percent, to 1,404 yen while supermarket chain Aeon slid 70.0 yen, 3.2 percent, to 2,149.50 yen.
Trading volume on the main section fell to 1,195.06 million shares from Thursday's 1,576.42 million shares.
© KYODO
The 225-issue Nikkei Stock Average ended down 62.85 points, or 0.31 percent, from Thursday at 20,014.77. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 7.54 points, or 0.50 percent, lower at 1,494.09.
Decliners were led by pharmaceutical, retail, and oil and coal product issues.
The Nikkei ended this year lower for the first time since 2011 when it slumped 17.3 percent, and it marked the first retreat since Prime Minister Shinzo Abe took office in 2012.
The Nikkei started the year above 23,000 and hit a 27-year high above 24,000 in October. The key index, however, came under strong pressure toward the year-end in line with sharp declines on Wall Street, tumbling below the psychologically important 20,000 mark on Tuesday for the first time in more than a year and briefly dipping below the 19,000 threshold the following day.
Brokers said the Japanese stock market maintained its firmness throughout most of the year, with investor sentiment underpinned by economic recovery in the United States and robust corporate earnings in the United States and Japan.
The recent turbulence reflected investors having overly priced in gloomier prospects for the world economy due largely to the trade conflict between the United States and China that made the market highly sensitive to negative cues, brokers said.
"The market was initially supported by Japanese firms' robust earnings, but at the end of the year investors became highly responsive to unfavorable news such as remarks by U.S. President Donald Trump" on issues such as replacing his senior aides, said Maki Sawada, vice president of the investment research and investor services department at Nomura Securities Co.
On Friday, the Nikkei edged down as investors locked in profits after it surged nearly 4 percent, or more than 750 points, on Thursday to post its largest points gain in about two years.
"Investors took profits ahead of the New Year holidays," said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
The Tokyo stock market will reopen Jan 4.
Market players grew jittery on Thursday's reports that Trump is considering signing an executive order as early as January to bar U.S. companies from buying equipment from Huawei Technologies Co and ZTE Corp.
"The report made investors concerned that relations between the United States and China will further deteriorate" and that they will find it harder to reach any agreement in trade talks during the 90-day ceasefire period, Sawada added.
On the First Section, declining issues outnumbered advancers 1,166 to 891, while 72 ended the day unchanged.
Oil and coal product issues met selling following their steep rises the previous day.
Oil refiner Idemitsu Kosan fell 50 yen, or 1.4 percent, to 3,610 yen while rival JXTG Holdings slid 14.70 yen, or 2.5 percent, to 576.70 yen.
Retailers were dragged down after J. Front Retailing reported falling sales and profits in the nine months through November.
The department store operator plunged 124 yen, or 9.0 percent, to 1,260 yen. Its peer Takashimaya fell 52 yen, or 3.6 percent, to 1,404 yen while supermarket chain Aeon slid 70.0 yen, 3.2 percent, to 2,149.50 yen.
Trading volume on the main section fell to 1,195.06 million shares from Thursday's 1,576.42 million shares.
© KYODO
- December 29, 2018
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