INSUBCONTINENT EXCLUSIVE:
TOKYO: Japan's Nikkei share average closed at a three-month low on Thursday as trade tensions spooked investors while shares of banks and
firms that benefit from inbound tourism languished.
Investors were jittery ahead of Friday, when US tariffs on $34 billion of Chinese
imports are set to kick in
China has said it will retaliate with tariffs on US products.
As China is "ready to fight back" against the US, "so investors are thinking
that we cannot avoid it (volatility) tomorrow," said Tsuyoshi Horota, general manager at SMBC Nikko Securities.
The Nikkei ended 0.8 per
cent lower at 21,546.99, the lowest closing since April 4.
Analysts said that short-term players such as commodity trading advisors sold
futures, causing such index-heavyweight stocks as Fast Retailing to decline.
The operator of Uniqlo clothing stores, which fell 2.2 per cent
on Wednesday after weak June same-store sales disappointed investors, dropped another 2.5 per cent
Thursday's tumble took 45 points off the Nikkei benchmark index.
Thursday's losers included companies that benefit from inbound tourism
demand as the United States-China trade tension stokes fears that the number of tourists from China to Japan may fall.
Cosmetics maker
Shiseido Co plunged 5.0 per cent, hotel operator Kyoritsu Maintenance dived 5.3 per cent and Japan Airport Terminal, which operates
duty-free shops, fell 3.4 per cent.
Banks stumbled, hitting the lowest since November 2016
Mitsubishi UFJ Financial Group dropped 0.9 per cent, Mizuho Financial Group fell 0.7 per cent and Shizuoka Bank shed 1.5 per cent.
The
retail sector underperformed
Ryohin Keikaku, maker of lifestyle goods sold under the 'MUJI' brand, tumbled 12 per cent after its annual operating profit forecast came in
below market expectations.
It expects an operating profit of 50 billion yen for the year ending February 2019, compared to 50.7 billion yen
estimated by 11 analysts polled by ThomsonReuters Starmine.
The broader Topix dropped 1.0 per cent to 1,676.20
