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Tokyo stocks narrow losses after opening on precipitous fall

Jiji Press TOKYO (Jiji Press) — Share prices failed to snap their losing streak Tuesday on the Tokyo Stock Exchange, although they recouped much of the big loss they suffered in early trading in the wake of a Wall Street sell-off.

The 225-issue Nikkei average fell 134.98 points, or 0.65 percent, to end at 20,585.31, after tumbling 366.87 points on Monday.

The TOPIX index of all First Section issues closed down 6.65 points, or 0.44 percent, at 1,499.23. It lost 27.58 points the previous day.

The market suffered a precipitous fall right after the opening bell with the Nikkei losing over 600 points, as investors rushed to sell a broad range of issues in view of the Dow Jones industrial average closing 767.27 points lower Monday on the New York Stock Exchange to mark the steepest closing point loss so far this year.

The U.S. government’s designation of China as a “currency manipulator” and Chinese firms’ halt in purchasing U.S. farm goods threw cold water over already shrunken investor sentiment amid the trade conflict between the two economic superpowers, brokers said.

But after the initial wave of selling, both the Nikkei and TOPIX indexes bounced back.

The yen’s quick weakening against the dollar, the U.S. stock index futures market’s recovery in off-hours trading and speculation about the Bank of Japan’s purchases of exchange-traded funds prompted investors to buy back shares, brokers said.

China allowed its currency, the yuan, to fall to a decade low below the psychologically important level of 7-to-the-dollar on Monday, in an apparent retaliation against U.S. President Donald Trump’s threat to impose additional tariffs on $300 billion of Chinese goods.

But the yuan’s reference rate set against the dollar by the People’s Bank of China on Tuesday was “not as low as market players had feared and resulted in the dollar’s rebound against the yen and Dow futures’ recovery,” said Hiroaki Kuramochi, chief market analyst at Capital Partners Securities Co.

Falling issues outnumbered rising ones 1,291 to 766 in the TSE’s First Section, while 92 issues were unchanged. Volume increased to 1.52 billion shares from Monday’s 1.47 billion shares.Speech

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