Tokyo: Tokyo stocks extended losses on Friday as a global market rout continues on worries including the diplomatic fallout from the disappearance of a Saudi journalist and fears of China’s slowdown.
China-related stocks took a hit, though disappointing Chinese growth data did not particularly accelerate the selloff, analysts said.
Dip-buying provided support for the Tokyo market, which was also helped by a rebound in Shanghai shares on speculation that Chinese officials might now take steps to restore investor confidence, analysts said.
The Nikkei 225 index lost 0.56 percent or 126.08 points to end at 22,532.08, marking a weekly loss of 0.72 percent.
The broader Topix index gave up 0.69 percent or 11.79 points to 1,692.85 for a weekly fall of 0.56 percent.
“Overnight losses on Wall Street dragged down the Tokyo market from the start. The Nikkei dropped to around 22,200 in early trade, but bargain hunting slowed further falls,” Okasan Online Securities said in a commentary.
Fresh data showed that the Chinese economy grew 6.5 percent on-year in July-September, its slowest pace for nine years.
But the market managed to shrug off the announcement, apparently reading it as likely to force China’s leadership to offer fresh support to ease investor concerns.
“The market rose on hopes that the People’s Bank of China would take steps to expand lending,” Okasan Online said.
Still, investors kept their guards up over other concerns including worries over US-Saudi Arabia ties after the disappearance of journalist Jamal Khashoggi, and higher US interest rates.
On top of that, the euro stayed largely under pressure “because of uncertainties in Europe” such as Brexit talks and Italy’s controversial budget plans, said Kyoko Amemiya, senior market strategist at SBI Securities.
The dollar traded at 112.50 yen while the euro was at 128.80 yen in Asian trade, against 112.18 yen and 128.63 yen in New York, respectively.
The euro was at $1.1462 against $1.1458 in New York.
China-linked shares were among the losers in Tokyo, with construction machine maker Komatsu dropping 3.1 percent to 3,074 yen, while its smaller rival Hitachi Construction Machinery fell 2.43 percent to 3,420 yen.
Industrial robot maker Fanuc managed to come out of earlier losses to end the day unchanged at 19,175 yen.
Market heavyweight Fast Retailing, Uniqlo casual wear operator, also emerged 0.20 percent higher at 55,940 yen.
SoftBank fell 1.22 percent to 9,530 yen. Sony fell 1.20 percent to 6,341 yen. Toyota lost 0.96 percent to 6,577 yen.
[source_without_link]AFP[/source_without_link]