INSUBCONTINENT EXCLUSIVE:
TOKYO: Japanese shares fell on Wednesday as worries that a tariff war between China and the United States could escalate weighed on
sentiment, while concerns that tourists will shop less due to a typhoon flooding a major airport hit shares in cosmetic makers.
Japan's
Nikkei share average dropped 0.51 per cent to 22,581, dropped for a fourth consecutive session following its eight-day winning streak while
the broader Topix fell 0.77 per cent to 1,705.
The Nikkei would have been hit harder if not for a 3.1 per cent gain for index heavyweight
Fast Retailing, following strong monthly sales data.
Typhoon Jebi, the most powerful storm to hit Japan in 25 years, rammed through western
Japan, killing at least nine people and briefly submerging a large part of Kansai Airport, which is built on a man-made island near
Osaka.
Fears that it could take a few weeks before Kansai, Japan's second-busiest international airport, could come back to full operation
have hit aviation-related stocks.
The air transport index fell 1.2 per cent
ANA Holdings and Japan Airlines were down 1.8 per cent and 0.5 per cent respectively.
Cosmetic makers, which have benefited from spending by
Chinese and other foreign tourists, were hit even harder on worries the airport's troubles could hamper tourism.
"Kansai airport is a
major hub for inbound tourism, which is already hit by flooding in western Japan in July
If the airport cannot be used for some time, that is going to be a big blow to the shares that have benefited from inbound tourists," said
Masahiro Ayukai, senior investment strategist at Mitsubish UFJ Morgan Stanley Securities.
Shiseido fell 4.2 per cent while Kose dropped 6.7
Pola Orbis Holdings and Fancl Corp were down 4.9 per cent and 9.7 per cent respectively.
Shiseido and Fancl were among the best performing
shares so far this year as they have attracted investors looking for shares that seemed least vulnerable to trade frictions.
Shares of
Nankai Electric Railway Co, which operates trains connecting Kansai airport and Osaka, fell 4.4 per cent.
Elsewhere, Line Corp fell 6.6 per
cent after the popular chat app operator said on Tuesday would raise around 148.1 billion yen ($1.33 billion) through convertible
bonds.
Investors were wary of further escalation in trade disputes between Washington and Beijing, with President Donald Trump poised to
impose 25 per cent tariffs on $200 billion of imports from China some time after a review period that ends on Thursday.
There were also
worries that Canada and the may not reach a trade deal as officials from two countries meet later in the day.
