Tokyo stocks follow Wall Street lower

Tokyo (APP): 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.