TOKYO (dpa-AFX) - The Japanese stock market is notably lower while the safe-haven yen strengthened on Monday following the negative cues from Wall Street Friday and the fall in crude oil prices amid rising global trade tensions.
The benchmark Nikkei 225 Index is losing 229.04 points or 1.11 percent to 20,372.15, after falling to a low of 20,305.74 in early trades. Japanese shares tumbled on Friday.
The major exporters are lower as the yen strengthened. Panasonic is down 0.4 percent, Sony is declining 0.6 percent, Canon is losing almost 1 percent and Mitsubishi Electric is lower by more than 1 percent.
Index heavyweight Softbank Group is losing almost 5 percent, Fanuc is declining more than 2 percent and Fast Retailing is edging lower by 0.1 percent.
In the auto space, Toyota Motor is declining more than 1 percent and Honda Motor is down 0.5 percent. Among tech stocks, Advantest is declining more than 1 percent and Tokyo Electron is lower by almost 3 percent.
Among the major banks, Mitsubishi UFJ Financial is down 1 percent and Sumitomo Mitsui Financial is lower by more than 1 percent. In the oil sector, Inpex is losing almost 2 percent and Japan Petroluem is declining more than 3 percent.
Among the few major gainers, Tokyo Electric Power, Tokyu Corp., Kikkoman Corp. and Kansai Electric Power are higher by more than 2 percent each.
On the flip side, Creit Saison is losing more than 6 percent, JGC Corp. is lower by 5 percent and Okuma Corp. is down almost 5 percent.
In economic news, the latest survey from Nikkei revealed that the manufacturing sector in Japan fell into contraction in May, with a manufacturing PMI score of 49.8. That's down from 50.2 in April, and it slips beneath the boom-or-bust line of 50 that separates expansion from contraction.
Japan will also release first-quarter figures for capital spending and company profits today.
In the currency market, the U.S. dollar is trading in the lower 108 yen-range on Monday.
On Wall Street, stocks closed sharply lower on Friday after U.S. President Donald Trump revealed plans to use tariffs to compel Mexico to make efforts to stop the flow of illegal immigrants across the country and into the U.S. The threat of new tariffs on Mexican imports comes amid the escalating trade dispute between the U.S. and China, which has recently weighed on stocks and raised concerns about the global economic outlook.
The Dow tumbled 354.84 points or 1.4 percent to 24,815.04, the Nasdaq plunged 114.57 points or 1.5 percent to 7,453.15 and the S&P 500 slumped 36.80 points or 1.3 percent to 2,752.06.
The major European markets also moved to the downside on Friday. While the German DAX Index tumbled by 1.5 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index both slid by 0.8 percent.
Crude oil prices plunged sharply on Friday as concerns about outlook for energy demand rose amid growing worries about trade dispute. WTI crude for July delivery plunged $3.09 or 5.5 percent to $53.50 a barrel on the New York Mercantile Exchange.
Copyright RTT News/dpa-AFX
© 2019 AFX News
