Tokyo stocks edge down amid caution over US-China trade tensions
TOKYO (Kyodo) -- Tokyo stocks edged down Tuesday, falling for the third consecutive trading day, as investors remained cautious about rekindling trade frictions between the United States and China.
The 225-issue Nikkei Stock Average ended down 23.86 points, or 0.06 percent, from Tuesday at 37,446.81. The broader Topix index finished 6.18 points, or 0.22 percent, lower at 2,771.11.
On the top-tier Prime Market, decliners were led by electric power and gas, pharmaceutical and wholesale trade issues.
The U.S. dollar briefly climbed to the lower 143 yen range, as the yen was sold on speculation that the Bank of Japan will err on the side of caution over additional interest rate hikes after its chief Kazuo Ueda said the central bank will not raise rates unless the economic and price situations are expected to improve.
The Nikkei stock index was initially supported by advances on Wall Street, lifted by hopes that tensions between the world's two largest economies will ease after the White House said President Donald Trump is likely to speak with Chinese leader Xi Jinping this week.
The possible talks will be held after China hit back at the United States over alleged violations of a temporary bilateral trade agreement reached in mid-May.
The benchmark index later reversed course to end lower as investors remained wary over prospects of the talks amid the recent flip-flops in Trump's tariff policy, including his announcement to double levies on steel and aluminum imports, brokers said.
"Investors were finding it difficult to imagine the two countries will reach some kind of straightforward agreement," said Maki Sawada, a strategist at the Investment Content Department of Nomura Securities Co.
"Concerns over intensifying trade frictions continue to weigh on the stock market, with the European Union warning of retaliatory steps over higher U.S. tariffs on steel imports," she said.
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