Tokyo, July 14 (AFP/APP): Tokyo stocks opened lower on Tuesday as sentiment worsened after rallies fizzled on Wall Street due to fresh worries over the coronavirus and renewed US-China tensions.
The benchmark Nikkei 225 index was down 0.58 percent or 131.39 points at 22,653.35 in early trade, while the broader Topix index slipped 0.40 percent or 6.35 points to 1,566.67.
“Profit-taking selling is dominating early trade following volatile US market moves,” said Okasan Online Securities chief strategist Yoshihiro Ito.
Japanese investors were taking money off the table after a strong market gain on Monday, with the Nikkei closing up more than 2.2 percent.
However, a rally on Wall Street petered out following more signs of a coronavirus surge in the United States.
“It is hard to attribute a specific trigger for the turn in sentiment that followed in the US afternoon trading session, but it seems that California virus news and US-China tensions were the main culprits,” National Australia Bank said.
US Secretary of State Mike Pompeo said Monday that Washington would treat Beijing’s pursuit of resources in the dispute-rife South China Sea as illegal, ramping up support for Southeast Asian nations.
“In the past the US has called for protecting ‘freedom of navigation’ in the South China Sea, the overnight statement is now taking a position against China on the territorial disputes in the region,” the NAB said.
Stay tuned to Baaghi TV for latest news and updates!
