Tokyo stocks close lower for third straight session

Tokyo stocks close lower for third straight session

Tokyo: Tokyo stocks fell for a third consecutive session on Thursday, as investors fret about the outlook for the global economy.

The benchmark Nikkei 225 index lost 0.65 percent, or 140.80 points, to close at 21,456.01 while the broader Topix index was down 0.84 percent, or 13.59 points, at 1,601.66.

Sellers took the upper hand after losses on Wall Street fuelled by disappointing private jobs data, a lack of news on the China-US trade front and the Organisation for Economic Cooperation and Development’s decision to cut its global growth forecast for 2019.

“High policy uncertainty, ongoing trade tensions and a further erosion of business and consumer confidence are all contributing to the slowdown,” the OECD said in an interim version of its Economic Outlook.

Shinichi Yamamoto, broker at Okasan Securities in Tokyo, told AFP: “Players are not pessimistic but fresh positive elements are needed before trading returns to an upward path.

In individual share trading Nissan dropped 2.05 percent to 918.9 yen on concerns over model changeovers and its marketing strategy.

“The sun will rise again but it will take time,” SMBC Nikko Securities said in a note as it lowered its investment guidance on the automaker.

Chipmaker Renesas tumbled 14.61 percent to 584 yen after announcing plans to temporarily halt production at several plants as Chinese demand flags.

Mizuho Financial Group dropped 1.54 percent to 172.5 yen after the major bank slashed its annual profit estimate.

Toyota fell 0.15 percent to 6,584 yen as reports said its European CEO had warned the firm could end production in Britain by 2023 if the country leaves the European Union without a deal.

The dollar was trading at 111.72 yen against 111.76 yen in New York late Wednesday.

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