Japanese stocks end flat, trade worries hamper exporters

  • Reuters
  • Stock Market News
Japanese stocks end flat, trade worries hamper exporters
Credit: © Reuters.

* Investors prefer defensive stocks amid trade war uncertainties

* Rakuten gains on cashless service expansion

By Hideyuki Sano and Ayai Tomisawa

TOKYO, June 6 (Reuters) - Japan's Nikkei ended flat in choppy trade on Thursday with investor sentiment hit by concerns about the U.S. trade war with Mexico and China, which shifted support toward firms with strong domestic exposure away from those reliant on oveseas trade.

The Nikkei share average .N225 ended 0.01% lower to 20,774.04, having flirted in positive territory for part of the session.

The broader Topix .TOPX shed 0.3% at 1,524.91.

"Although expectations of rate cuts by the Federal Reserve have led to rallies in U.S. shares, Japanese shares are benefiting less because U.S. rate cuts would strengthen the yen," said Masahiro Ayukai, senior investment strategist at Mitsubishi UFJ Morgan Stanley (NYSE: MS ) Securities.

The Japanese yen hit a five-month high on Wednesday.

Worries about the trade wars U.S. President Donald Trump is waging on many fronts hampered semiconductor shares and other exporters.

Murata Manufacturing 6981.T fell 3.9% while TDK 6762.T dropped 3.4% and Taiyo Yuden 6976.T plunged 4.7%.

Nissan Motor 7201.T fell 1.7% and Mitsubishi Motors 7211.T tumbled 5.9% after Fiat Chrysler FCHA.MI said it had abandoned its $35 billion merger offer for Renault RENA.PA , the alliance partner of the two Japanese firms.

Uncertainties over the global trade environment goaded investors to seek refuge in defensive and domestic demand-oriented shares, with the wider adoption of cashless services by the government and companies offering a good theme for investors to latch on to.

Rakuten 4755.T jumped 4.7% after the e-commerce company announced a tie-up with East Japan Railway 9020.T on cashless services.

East Japan Railway rose 1.1% while West Japan Railway 9021.T gained 1.7%.

Elsewhere, drugmaker Dai-ichi Sankyo 4568.T extended its recent gains on optimism over its cancer drug, rising 1.7% and hitting a record high.

Drugstore chain operator Cocokara Fine 3098.T jumped 5.7%, extending its gains so far this week to more than 30%, as it has become a target of alliance by two of its bigger rivals, Sugi Holdings 7694.T and Matsumotokiyoshi 3088.T .

Car park operator Park 24 4666.T jumped 4.6% in heavy trade, extending its recovery after a hit taken on the company's weaker-than-expected earnings last month. (Editing by Sam Holmes)

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