Tokyo stocks plunge on Wall Street tumble, stronger yen

Jiji PressTOKYO (Jiji Press) — Stocks dived on the Tokyo Stock Exchange Tuesday, suffering from an overnight sell-off on Wall Street and the yen’s strengthening against the dollar.

The 225-issue Nikkei average gave up 229.38 points, or 1.11 percent, to end at 20,455.44. On Friday, the key market gauge added 91.47 points. The Tokyo market was closed Monday for a national holiday.

The TOPIX index of all First Section issues finished down 17.27 points, or 1.15 percent, at 1,486.57, after advancing 5.18 points the previous trading day.

Stocks bled from the outset, with the Nikkei average expanding its loss by more than 300 points soon after the opening bell.

Sell orders piled up in the wake of the Dow Jones industrial average plunging on the New York Stock Exchange Monday on broad-based selling triggered by U.S. President Donald Trump’s remarks Friday indicating that Washington is not ready to make a trade deal with Beijing, brokers said.

In addition to the growing concerns over a prolonged U.S.-China trade war, geopolitical risks, such as turmoil in Hong Kong, and the yen’s advance against the dollar weighed down the Tokyo market, they noted.

But after the early morning tumble, stocks resisted falling further due to a halt in the yen’s appreciation, going sideways for the rest of Tuesday’s session amid a dearth of fresh trading incentives.

The market was underpinned in the afternoon by “apparent purchases of exchange-traded funds by the Bank of Japan,” Yutaka Miura, senior technical analyst at Mizuho Securities Co., said.

But there was no follow-through buying because of the lack of fresh positive news, Miura noted, adding that also absent were cues for active selling.

Falling issues far outnumbered rising ones 1,655 to 444 in the TSE’s First Section, while 50 issues were unchanged.

Volume rose to 1,282 million shares from Friday’s 1,185 million shares.Speech

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