NIKKEI DROPS ON RECENT TRADE WORRIES, FRAIL US DATA
TOKYO-Japan’s Nikkei average sunk down on Tuesday as emerging trade worries surfaced after US President imposed tariffs on Brazil and Argentina, while unstable manufacturing records contributed to inactivity.
The Nikkei share average plummeted down with 1.46% loss to 23, 186.84 as it marginally reduced decline to 23,278.67 by 0152 GMT, recording 1.07%. The index recuperated from loss as it peaked above its 25-day moving average of 23, 245.
President Donald Trump disclosed his plan of imposing tariffs on Brazil and Argentina’s steel and aluminium imports increasing market anxiety and the pressing more tension with Beijing.
US manufacturing sector suffered from contraction for fourth consecutive month in November as the inactivity dampened market optimism brought by positive manufacturing survey from China last Monday. These were disclosed in accordance to the data released by U.S. Institute for Supply Management (ISM).
Chinese government forbade US military aircraft and ships from going to Hong Kong’s territory as it also pressed sanctions on various US non-governmental organizations as retaliation to US recent legislation backing up anti-government protesters.
“Should Trump impose the so-called fourth tariffs on China on Dec. 15, it would be a completely different scenario from what most investors are expecting,” said Masayuki Kubota, chief strategist at Rakuten Securities.
Market optimism is high that Washington will stop imposing another 15% tariff to an estimated $156 billion worth of Chinese goods on Dec. 15 as part of the ‘phase one’ trade pact.
The broader Topix decline with 0.9% setback to 1,699.04. Bigger shares sunk down on the main board brought heavily by higher number of decliners over advancers with ratio of 83 to 17.
Softbank group edged down with 2.3% loss while Hitachi declined with 1.4%.
Pigeon sunk down with 15.7% following the baby goods maker’s move of cutting out its yearly outlook due to negative quarterly finish.
Nomura Holdings rose with 1.7% gains enough to secure its 1 1/2 –year peak after country’s top securities brokerage firm appointed Kentaro Okuda for turnaround operations.
The recent arrangement was released on Monday as Nomura disclosed its strongest yearly profit in more than 17 years.