Tokyo: Shares end flat as economic uncertainty around US stimulus weighs
[TOKYO] Japanese shares ended little changed on Wednesday, as fears of a slower economic recovery from the coronavirus crisis resurfaced after US President Donald Trump halted talks for an additional stimulus package until after the election.
The benchmark Nikkei share average was little changed at 23,422.82 at the close, while the broader Topix was almost flat at 1,646.47.
Nearly a third of 33 sector sub-indexes on the Tokyo exchange traded lower, with pharmaceuticals, fisheries and forestry and foods leading the decliners on the main bourse.
Prospects for additional US coronavirus bill crumbled after Mr Trump announced on Twitter that he was calling off negotiations with Democratic lawmakers on coronavirus relief legislation until after the election.
Also weighing on the market was the uncertainty of Mr Trump's health, with the US presidential election just less than a month away.
"In some part, I think President Trump is forcing himself too hard since he has left the hospital in a short period of time," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.
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"It would be crucial to be cautious of how his health progresses from now on." Boeing-related shares Mitsubishi Heavy Industries fell 0.74 per cent, while Kawasaki Heavy Industries was down 0.14 per cent, in line with their US peers as Boeing cut its rolling 20-year forecast for airplane demand on the coronavirus crisis.
Yakult Honsha slipped 7.12 per cent after French food group Danone said it would sell its remaining 500 million euro (S$800.8 million) stake in the Japanese probiotic yogurt maker.
Elsewhere, Nippon Telegraph and Telephone jumped 3.31 per cent and Fanuc inched up 0.1 per cent, while Fujitsu lost 0.53 per cent after the three firms said they would set up cloud service joint venture for manufacturing companies.
The Mothers Index of startup firms climbed more than 2 per cent.
REUTERS
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