Tokyo Stocks Skid On Huawei CFO Extradition Report

By Japan Economic Newswire

Tokyo stocks ended lower Tuesday, extending losses in the afternoon following a report that Washington may make a formal request for the extradition of Chinese tech giant Huawei Technologies Co.’s chief financial officer awaiting further court hearings in Canada.

The 225-issue Nikkei Stock Average ended down 96.42 points, or 0.47 percent, from Monday at 20,622.91. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 9.94 points, or 0.63 percent, lower at 1,556.43.

Decliners were led by oil and coal, metals, and iron and steel producers.

After opening higher on the yen’s weaker tone in foreign exchange trading, shares pared gains and left the market vulnerable to profit-taking and selling on the International Monetary Fund’s downward revision of its global growth outlook overnight.

Selling accelerated as Canadian newspaper The Globe and Mail reported that the United States is planning to make a formal request to Canada to extradite Huawei CFO Meng Wanzhou.

“The Huawei report stoked fears that relations between the two nations may turn sour again, following a recent improvement, and their trade negotiations will be affected,” said Yutaka Miura, senior technical analyst at Mizuho Securities Co.

Selling was also partly attributable to concerns about Japanese exporters’ earnings after the IMF revised downward its global outlook for 2019 and 2020, traders said.

The IMF said the global economy will grow at 3.5 percent in 2019 and 3.6 percent in 2020, revised down by 0.2 and 0.1 percentage point from its October projection, respectively.

On the First Section, declining issues outnumbered advancers 1,466 to 573, while 88 ended the day unchanged.

Among exporters, Sharp slumped 83 yen, or 6.5 percent, to 1,187 yen and Sony fell 84 yen, or 1.5 percent, to 5,352 yen. Suzuki Motor slipped 90 yen, or 1.5 percent, to 5,847 yen and Mitsubishi Motors shed 10 yen, or 1.5 percent, to 663 yen.

Firms with relatively large exposure to China drew selling. Yaskawa Electric fell 69 yen, or 2.3 percent, to 2,936 yen, Tokyo Electron sagged 255 yen, or 1.8 percent, to 14,260 yen, and Komatsu went down 43.00 yen, or 1.5 percent, to 2,731.50 yen.

Trading volume on the main section fell to 1,010.93 million shares from Monday’s 1,127.74 million shares.

This article provided by NewsEdge.