Tokyo stocks likely to stay muted as hopes fade for early U.S.-China deal

Jiji Press TOKYO (Jiji Press) — Tokyo stocks are expected to move on a weak tone without showing wild swings this week, amid persistent concerns over the U.S.-China trade dispute and a global growth slowdown.

Last week, the 225-issue Nikkei average tumbled 455.22 points, or 2.19 percent, to end at 20,333.17 on the Tokyo Stock Exchange Friday.

The Nikkei gave up nearly 420 points only on Friday, as hopes for an early deal to settle the trade dispute between the United States and China waned after U.S. President Donald Trump said he would not meet with his Chinese counterpart, Xi Jinping, before an early March dispute settlement deadline.

‘Sizable distance’

A White House economic adviser pointed to a “sizable distance” between Washington and Beijing in their trade negotiations.

The European Union’s downward revisions in its euro area growth estimates also threw cold water on the market.

This week, analysts and brokers expect the Nikkei to move between 19,800 and 20,700.

“Now that expectations for progress in the U.S.-China trade negotiations have receded, stocks may head south [this] week,” said Yutaka Miura, senior technical analyst at Mizuho Securities Co.

“The market had been driven up by the expectations,” he noted.

“Market sentiment can hardly improve soon amid a slew of overseas risk factors,” also including the issues of the U.S.-Mexico border wall and Brexit, a market source said.

But investors are unlikely to actively buy or sell stocks this week, brokers said, pointing out that there could be little surprising news.Speech

Click to play


+ -

Generating speech. Please wait...

Become a Premium Member to use this service.

Become a Premium Member to use this service.

Offline error: please try again.