The stock exchange in Japan closed sharply lower on Thursday. A disappointing job report from the US wage slip processor ADP sparked concerns about the impact of the trade dispute with China on the world’s largest economy. In addition, Washington will penalize the European Union with import duties, which threatens to create a new trade battle between Europe and the United States.
The leading Nikkei in Tokyo ended with a 2 percent loss at 21,341.74 points. In particular, the Japanese companies that are sensitive to trade troubles and economic developments were sold. Toyota and Suzuki car manufacturers fell 2.5 percent and 4 percent.
The financial companies were also under pressure after the substantial price losses among American counterparts. Insurer T&D Holdings and securities company Daiwa Securities lost 2.4 percent and 3.4 percent. Tokyo Marine surrendered 1.8 percent. Business newspaper Nikkei reported that the Japanese insurer wants to take over its counterpart Pure, for the equivalent of 3 billion dollars.
In Hong Kong, the Hang Seng index was 0.6 percent lower in the meantime. The All Ordinaries in Sydney lost 2.1 percent under the leadership of the Australian banks. In Shanghai, the stock exchange is closed on Monday until next week due to the celebration of the 70th anniversary of the People’s Republic of China. In South Korea, investors also had a day off.
Peretz M. is an accomplished economist and financial journalist with a deep understanding of the global economy and financial markets. He is a regular contributor to EconomicInform, where he provides expert analysis and commentary on current economic trends and events. With a strong educational background in economics, Peretz has a talent for breaking down complex economic concepts for a general audience and is able to provide insightful perspectives on a wide range of economic issues.
