Nikkei logs first weekly loss in 3 as U.S.-China tensions weigh

Published 2020/05/15, 09:35
Updated 2020/05/15, 09:36
© Reuters.

SYDNEY, May 15 (Reuters) - Tokyo shares rebounded on Friday after three straight sessions of losses, but logged their first weekly decline in three as investor sentiment took a hit following a deterioration in U.S.-China relations.

The benchmark Nikkei average .N225 ended 0.6% higher at 20,037.47, with recently-battered cyclical sectors leading gains. For the week, the index lost 0.7%.

The broader Topix .TOPX added 0.5% to end at 1,453.77, with more than two-thirds of the 33 sector sub-indexes on the Tokyo exchange finishing higher. For the week, the index fell 0.3% and recorded its first weekly decline in three.

Showing signs of more cracks in the U.S.-China relationship, President Donald Trump said he was very disappointed with China's failure to contain COVID-19 and suggested he could even cut ties with the world's second-largest economy. now eye Japan's gross domestic product (GDP) data for the January-March quarter, which, according to a Reuters poll, likely shrank for a second straight quarter. the demand front, data from Japan Exchange Group showed that foreign investors were net sellers of Japanese stocks last week for the 13th consecutive week, the longest streak ever. cyclical sectors, mining .IMING.T , sea transport .ISHIP.T and machinery .IMCHN.T , were among the top-performing sub-indexes on the main bourse.

Semiconductor-related companies were in demand following a 2.8% gain overnight in the U.S. Philadelphia semiconductor index .SOX .

Chipmaking gear manufacturer Tokyo Electron Ltd 8035.T rose 2.0% and test device maker Advantest Corp 6857.T climbed 3.3%.

Nissan Motor Co Ltd 7201.T rallied 3.9% on news reports that the Japanese automaker may be looking at the possibility of closing its Barcelona factory, possibly shifting its production to Renault (PA:RENA) plants. the overall market trend, Mitsubishi Estate Co Ltd 8802.T tumbled 8.8% after the company cut its full-year dividend outlook and forecast a 25.9% fall in net profit for this business year to March 2021.

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