TOKYO- Japanese shares sunk lower on Wednesday after US President Donald Trump s speech brought disappointment to investors as he disclosed very little information about the trade deal. In line with this, Hong Kong s political unrest contributed to Nikkei s underperformance as the city faced increased case of violence.
The Nikkei shares plummeted with 0.85% to 23,319.87, after its 13-month high peak performance of 23, 591 last Friday. The broader Topix suffered with 0.55% to 1,700.33 cutting its six-day high record.
Trump s intention of signing the trade pact is still unclear as he warned a higher tariff implementation on Chinese goods if China does not cooperate.
I guess it was his usual tactics but it wasn t positive, said Hideyuki Ishiguro, senior strategist at Daiwa Securities. The market has been overheating so we need a period to cool down a bit too.
Market analysts said that a correlation is possible after Nikkei s positive performance in previous months.
Among blue chips, Nissan Motor dropped with 0.5% after the carmaker wrapped its annual prediction to an 11-year low as it released a 70% inactivity in quarterly profit. After the arrest of the company s former chairman Carlos Ghosn a year ago, the company has an overall 30% decline in value so far.
GM Payment Gateway sunk down with 9.3% after the e-commerce settlement service company s quarterly earnings and profit guidance failed to hit forecast and market expectations.
Fujifilm soared with 6.3% following its positively-ended quarterly session as it is estimated to have a record-breaking yearly profit.
Other sector s performance remained firm as investors patronized tech shares with direct impact on economic outlook. Keyence and Murata Manufacturing inched higher with 0.6% and 0.7% respectively.
https://maxitrade.com/en/nikkei-inches-lower-as-trump-speech-hk-political-unrest-bring-anxiety
