TOKYO, Nov 21 — Tokyo stocks fell for a third consecutive session today on revived concerns about a China-US trade deal after American lawmakers approved legislation to support Hong Kong civil rights.
The benchmark Nikkei 225 index lost 0.48 per cent, or 109.99 points, to close at 23,038.58, while the broader Topix dipped 0.10 per cent, or 1.73 points, to 1,689.38.
Tokyo stocks had opened lower following losses on Wall Street as US lawmakers yesterday approved legislation that supports human rights and democracy in Hong Kong and also backs the territory’s anti-China protesters, sending the measure opposed by Beijing to President Donald Trump.
“In addition to falls in US stocks, reports that US President Trump is expected to sign legislation passed by the Congress are seen damping the Japanese market,” Toshiyuki Kanayama, senior market analyst at Monex, said in a note.
The bill requires the US president to annually review the favourable trade position that Washington grants to Hong Kong, and threatens to revoke the coveted status the semi-autonomous Chinese territory enjoys with the United States if its freedoms are quashed.
The measure now heads to Trump, who has not said whether he will sign it.
“Negative news overwhelmed the positive,” said Shinichi Yamamoto, a broker at Okasan Securities in Tokyo.
“But this week’s fall can be seen as a pause following the recent strong buying sentiment,” Yamamoto told AFP. “Chances are still high that stocks climb up again after a short break.”
The dollar fetched ¥108.58 in Asian afternoon trade, down from ¥108.62 as traders fled to the safe-haven Japanese currency on renewed concerns over the trade deal.
In Tokyo, semiconductor-related shares were sharply lower, with chip-making equipment manufacturer Tokyo Electron trading down 3.44 per cent at ¥21,735 and chip-testing equipment maker Advantest off 3.88 per cent at ¥5,200.
Nissan fell 1.01 per cent to ¥664 but Toyota rose 0.36 per cent to ¥7,716 with Honda up 0.35 per cent at ¥3,103. — AFP
