Tokyo: Stocks edge down on US-China worries

[TOKYO] Tokyo stocks closed marginally lower Thursday as uncertainty surrounding US-China trade talks offset bargain-hunting.

The benchmark Nikkei 225 index fell 0.09 per cent, or 18.49 points, to 20,460.93 while the broader Topix index inched down 0.01 per cent, or 0.18 points, to 1,490.17.

Tokyo shares opened higher after Wall Street staged a late rally on Wednesday as the gloom lifted on a plunge in crude oil inventories, pointing to sustained demand for fuel, a sign of economic health.

But they fell into negative territory as investors remained worried about the US-China trade war and Britain's exit from the European Union.

"People continued to buy on dips because many stocks are still undervalued," said Naoki Fujiwara at Shinkin Asset Management.

"But continued concerns about the US-China trade dispute capped the buying sentiment," Mr Fujiwara told at AFP.

Investor fears of a no-deal Brexit have also increased as Britain's government moved to suspend parliament.

The dollar was trading at 105.91 yen in Asian afternoon trade against 106.14 yen in New York on Wednesday.

Shares in Suzuki Motor jumped 1.54 per cent to 4,148 yen after auto giant Toyota said it would take a nearly five-per cent stake in the small-car specialist.

Toyota shares were up 0.01 per cent at 6,890 yen.

Energy shares rose with oil explorer Inpex rising 0.21 per cent to 899.9 with Japan Petroleum Exploration up 0.11 per cent at 2,543 yen.

AFP