The market all around was cautious as the hope of a trade deal with the US and China receded. The Nikkei shares reduced by 0.4% and ended at 21,473.29 points. Moreover, there were also reports that the factory output in Japan reduced this year which further lead to more cynicism in the market which resulted in Nikkei stocks falling.
In the global market:
There was caution in the trade markets as the US Trade Representative Robert Lighthizer said in the Congress that there was still a lot of hard work left if they were to come to a settlement on the trade dispute with China. The comments made by the trade rep was the first after Trump on Sunday said that the import tariff hikes would be delayed. That set the trigger among investors and Chief equity strategist Shingo Ide said, “Caution about trade deals returned to the market, and the market’s consensus has become that a US-China trade skirmish will last for a while.”
Japan’s Nikkei shares fall:
There was more gloom in the market as Japan reported that its factory output fell due to a slowdown in China and the trade war between China and the US affecting the manufacturing sector which is the biggest driver of economic growth for the country. The shares of the machinery fell with Tokyo Electric falling by 1.2%, Mitsui OSK lines by 1.9%, Fanuc Corp by 1.9% and Komatsu Ltd by 2.1%. Even the shipping sector was reported to have had a bad year with a fall of 1.3% along with the electric machinery reducing by 1.1%. The broader Topix decreased by 0.3% and ended at 1,615.02.
There was some cheer with the oil and mining shares increasing by 2% after the US crude inventories fell due to which the Japan Petroleum Exploration Co increased by 2.3% an Inpex Corp by 1.4%.
In late trade, the Japanese stocks fell further as there was no news of the US-North Korea summit in Vietnam. On Thursday, the talks between the US President Donald Trump and the North Korean leader Kim Jong Un did not happen as they cut short their schedule. That made the market even more nervous as the reason for cutting short was not mentioned, so the investors have had to wait and watch the approach. Later, Sarah sander the White House spokeswoman confirmed that both leaders failed to reach an agreement in this summit but look forward to meeting again in the future adding to more cynicism.