Tokyo Stocks Close Lower

AFP/APP

Tokyo: Tokyo stocks closed lower on Monday as investors took a risk-averse stance and fresh data fuelled worries about the US economy.

The benchmark Nikkei 225 index lost 1.83 percent, or 712.12 points, to 38,102.44, while the broader Topix index gave up 1.70 percent, or 46.60 points, to 2,700.01.

Investors sold down Tokyo shares on worries about French politics, concerns about the US economy and uncertainty over the Bank of Japan’s policy outlook, analysts said.

“Investors are conscious of slowdown concerns surrounding the US economy” following data last week showing a fall in consumer sentiment, IwaiCosmo Securities said.

“Political uncertainty in Europe was also shrinking investors’ spirit,” the brokerage said.

Daiwa Securities added that “it’s clear that investors are unwinding their positions and moving away from risk assets because of worries over political turmoil in France”.

France is preparing for a snap election called by President Emmanuel Macron in the wake of a European poll defeat at the hands of the far right.

Players were also gauging the impact of the Bank of Japan’s decision last week to reduce government bond purchases, part of a long-term plan to end its super-easy monetary policy.

Governor Kazuo Ueda’s comments about a potential rate hike in July were not seen as dovish, driving down share prices, Hiroshi Namioka at T&D Asset Management told AFP.

The dollar stood at 157.38 yen, nearly unchanged from 157.37 yen in New York.

Toyota fell 2.57 percent to 3,036 yen, and Sony Group fell 2.61 percent to 12,695 yen. Heavily weighted Fast Retailing, Uniqlo’s parent company, lost 2.33 percent to 39,460 yen.