NIKKEI INCHES LOWER AS TRUMP SPEECH, HK’S POLITICAL UNREST BRING ANXIETY

TOKYO- Japanese shares sunk lower on Wednesday after US President Donald Trump s speech brought disappointment to investors as he disclosed very little information about the trade deal. In line with this, Hong Kong s political unrest contributed to Nikkei s underperformance as the city faced increased case of violence.

The Nikkei shares plummeted with 0.85% to 23,319.87, after its 13-month high peak performance of 23, 591 last Friday. The broader Topix suffered with 0.55% to 1,700.33 cutting its six-day high record.

Trump s intention of signing the trade pact is still unclear as he warned a higher tariff implementation on Chinese goods if China does not cooperate.

 I guess it was his usual tactics but it wasn t positive,  said Hideyuki Ishiguro, senior strategist at Daiwa Securities.  The market has been overheating so we need a period to cool down a bit too. 

Market analysts said that a correlation is possible after Nikkei s positive performance in previous months.

Among blue chips, Nissan Motor dropped with 0.5% after the carmaker wrapped its annual prediction to an 11-year low as it released a 70% inactivity in quarterly profit. After the arrest of the company s former chairman Carlos Ghosn a year ago, the company has an overall 30% decline in value so far.

GM Payment Gateway sunk down with 9.3% after the e-commerce settlement service company s quarterly earnings and profit guidance failed to hit forecast and market expectations.

Fujifilm soared with 6.3% following its positively-ended quarterly session as it is estimated to have a record-breaking yearly profit.

Other sector s performance remained firm as investors patronized tech shares with direct impact on economic outlook. Keyence and Murata Manufacturing inched higher with 0.6% and 0.7% respectively.

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