Tokyo stocks close lower

9 April, 2019 12:00 AM printer

TOKYO: Tokyo stocks erased early gains and closed down on Monday as investors locked in profits following recent gains.

The benchmark Nikkei 225 index fell 0.21 percent, or 45.85 points, to 21,761.65, while the broader Topix index was down 0.35 percent, or 5.61 points, at 1,620.14.

Tokyo shares opened higher, encouraged by gains on Wall Street after positive March US jobs data, reports AFP.

The Labor Department reported that the US added 196,000 net new positions last month, well above expectations, while the jobless rate held steady at 3.8 percent.

“But profit-taking emerged in the afternoon as concerns over the US-China trade talks grew,” Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP.

The dollar fetched 111.37 yen in Asian afternoon trade, against 111.70 yen in New York on Friday.

“The investor focus this week is four-fold,” Hirokazu Kabeya, chief global strategist at Daiwa Securities, said in a commentary.

“The first will be the issue of Brexit… the April 10 EU summit will be a major climax, and if the leaders will be able to avoid a no-deal Brexit, risks will be avoided short-term,” he said.

The second factor is Japanese corporate earnings reports to be released from this week, he said.

The third is China’s economic indicators including trade data for March due on Friday, and the fourth is US economic data, particularly Michigan University’s consumer sentiment index due on Friday, Kabeya said.