Tokyo stocks follow Wall Street lower

Tokyo stocks opened lower on Thursday, taking a negative lead from Wall Street amid lingering worries over the US- China trade war.

The benchmark Nikkei 225 index slipped 0.27 percent or 56.71 points to 21,073.01 in early trade while the broader Topix index was down 0.40 percent or 6.23 points at 1,547.99.

“Japanese stocks are likely to continue facing profit-taking, carrying over the negative tone in US stocks,” Okasan Online Securities said in a note.

But the impact of the selling would be partially eased by hopes for US
interest cuts, it said, with the Federal Reserve set to hold a policy meeting
next week.

Wall Street stocks sagged for a second straight session Wednesday, with
petroleum-linked shares sinking with oil prices and banks falling on worries
over economic growth.

Concerns over the trade war were lingering though US President Donald
Trump said he had “a feeling that we’re going to make a deal with China.”

He expects to meet President Xi Jinping at a G20 summit in Japan later
this month.

Energy companies fell on lower oil prices, with Inpex dropping 1.71
percent to 899.3 yen.

Heavy selling also hit the semiconductor sector. Chip-testing device maker
Tokyo Electron tumbled 2.35 percent to 15,200 yen.

Takeda Pharmaceutical fell 1.52 percent to 3,757 yen after advisory firm
Institutional Shareholder Services recommended against reappointing President
and Chief Executive Christophe Weber, citing the company’s low returns on
investment.

The dollar stood at 108.49 yen against 108.51 yen in New York Wednesday
afternoon.