Japanese shares slip on concerns of longer trade war

  • Reuters
  • Stock Market News
Japanese shares slip on concerns of longer trade war
Credit: © Reuters.

TOKYO, Dec 4 (Reuters) - Japan's Nikkei share average fell to its lowest level in about two weeks on Wednesday as hopes for a quick initial U.S.-China deal dimmed following U.S. President Donald Trump's remarks, while a stronger yen dented appetite in the country's exporters.

The Nikkei 225 index .N225 slid 1.24% to 23,089.21 and fell below its 25-day moving average of 23,253, a key technical support.

"In some ways, I like the idea of waiting until after the election for the China deal. But they want to make a deal now, and we'll see whether or not the deal's going to be right; it's got to be right," Trump told reporters in London on Tuesday, where he was due to attend a meeting of NATO leaders. yen has strengthened over 1% in the past 48 hours.

As a result, shares of exporters such as electronic parts maker Murata Manufacturing 6981.T fell 2.4%, industrial robot manufacturer Fanuc 6954.T dropped 1.6% and Honda Motor 7267.T shed 1.1%.

Among other shares, Astellas Pharma 4503.T fell 2.6%, extending their decline after it announced the acquisition of U.S. drugmaker Audentes Therapeutics Inc BOLD.O for a 110% premium.

Fast Retailing 9983.T dropped 4.9% after the operator of the Uniqlo casual clothing chain reported weak domestic sales in November. The drop was enough to chop 110 points, or 0.5 percentage point, off the Nikkei.

The broader Topix .TOPX lost 0.55% to 1,697.37, a shade better performance than the others in the region. Most major indexes lost over 1%.

About 31% of all the listed shares on the Tokyo Exchange's main board rose, led mainly by domestic-oriented shares.

Investors usually shift money to such sectors when there are concerns around global growth.

Toiletry goods maker Kao Corp 4452.T rose 0.5%, while many utility companies also gained, including Tokyo Electric Power 9501.T , Chubu Electric Power 9502.T and Osaka Gas 9532.T , which rose 2.3%, 1.2% and 0.8% respectively.

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