Tokyo shares slip from 3-month highs as U.S.-China tensions rattle investors

  • Reuters
  • Stock Market News
Tokyo shares slip from 3-month highs as U.S.-China tensions rattle investors
Credit: © Reuters.

SYDNEY, May 29 (Reuters) - Japanese stocks retreated from three-month highs on Friday, as escalating U.S.-China tensions over Hong Kong prompted investors to take profits from recent sharp gains ahead of the weekend.

The benchmark Nikkei average .N225 fell 0.3% to 21,854.00 by the midday break, dropping below a major chart point of the 200-day moving average it crossed the previous day.

Market participants now await U.S. President Donald Trump's response to China's passage of a national security law for Hong Kong.

Trump said on Thursday he would hold a news conference on China on Friday, as his administration moves to pressure Beijing over its treatment of Hong Kong. said Sino-U.S. worries were the main headwinds and that this much of correction was not surprising given this week's big rallies. The Nikkei rose 7.5% in the last four days.

The broader Topix .TOPX dropped 0.4% to 1,571.18 by the midday recess, also off its three month-high touched on Thursday, with two-thirds of the 33 sector sub-indexes on the Tokyo exchange trading lower.

Highly cyclical iron and steel .ISTEL.T , sea transport .ISHIP.T and transport equipment .ITEQP.T were the worst three performing sectors on the main bourse.

Nissan Motor Co Ltd 7201.T slumped 7.7% as the company posted an annual operating loss of 40.5 billion yen ($377 million) for the business year ended in March, its worst performance since 2008/09. Corp 7731.T slumped 8.8% after the company reported a massive 91.8% fall in its operating profit for the financial year ended on March 31. the overall trend, the index of Mothers start-up shares .MTHR advanced 2.6% to a 16-month high.

For the week, both the Nikkei and the Topix were still up 7.2% and 6.3%, respectively, and set to log their second consecutive weekly gains. ($1 = 107.4200 yen)

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