Tokyo shares close lower on US-China concerns

TOKYO: Tokyo stocks closed lower as investors squared positions ahead of the weekend with worries lingering over US-China tensions.

The Nikkei 225 index lost 0.80 per cent, or 164.5 points, to 20,388.16. Over the week, the benchmark index rose 1.75 per cent, largely on hopes for economic restarts.

The broader Topix index ended down 0.90 per cent, or 13.41 points, at 1,477.80. It gained 1.65 per cent at over the week.

“Investors moved to close positions as US futures contracts and Hong Kong shares dropped on the back of concerns that USChina tensions may intensify,” Okasan Online Securities said in a client note.

A three-day weekend in the United States also discouraged investors to buy, the firm said.

The rising trade and diplomatic tension between China and the US continued to dampen sentiment while investors were eyeing China’s National People’s Congress.

Beijing kicked off its National People’s Congress with the submission of a measure seeking “powerful” steps to curb Hong Kong’s pro-democracy movement, a move expected to fan fresh protests in the semi-autonomous financial hub. Hong Kong shares tumbled on Friday.

Investors were underwhelmed as the Bank of Japan announced it would expand its loan programme by 30 trillion yen (US$279 billion) for smaller companies hit hard by the coronavirus outbreak.

Among major shares, SoftBank Group rose 2.83 per cent to 4,607 yen after it announced it would sell a stake in its mobile division to buy back its own shares.