BUSINESS Tokyo's Nikkei down over 2% on no BoJ buying, strong yen

BUSINESS

Tokyo's Nikkei down over 2% on no BoJ buying, strong yen

AFP

15:27, April 13, 2020

tokyo stocks.jpg

Pedestrians wearing face masks walk past an electric board showing the Nikkei 225 index (C) on the Tokyo Stock Exchange in Tokyo. (File photo: AFP)

Tokyo's benchmark Nikkei stock index closed down more than two percent Monday on a stronger yen and disappointment over a lack of asset-buying from the Bank of Japan.

The Nikkei 225 index dropped 2.33 percent, or 455.10 points, to end at 19,043.40, while the broader Topix index lost 1.69 percent, or 24.13 points, to 1,405.91.

Traders also appeared to shrug off a deal by major oil exporters to slash supply, putting an end to a spat between Russia and Saudi Arabia that sent crude prices tumbling.

Okasan Online Securities chief strategist Yoshihiro Ito said the Tokyo market was weighed down by a stronger yen and "receding expectations" of BoJ asset purchases.

The dollar traded at 107.92 yen in Asian trade against 108.37 yen in Tokyo late Friday. US markets were closed for a holiday on Friday.

Analysts also remained cautious in response to the spread of the new coronavirus infection, Ito added.

The virus has so far infected 7,255 people and killed more than 100 in Japan and the number of cases continues to rise, especially in Tokyo.

Coronavirus deaths in the US topped 20,000 on Saturday.

In Tokyo trading, some blue-chip exporters were lower, with parts maker Murata Manufacturing falling 2.79 percent to 5,594 yen. 

Sony lost 2.44 percent to 6,507 yen while Uniqlo casual wear operator and market heavyweight Fast Retailing dropped 3.81 percent to 46,350 yen.

Telecom and investment giant SoftBank Group fell 3.38 percent to 4,200 yen.

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