Japanese Stocks Fall, Tensions with China Pressure Retail Sector
Japanese stock markets opened lower as escalating tensions with China weighed on retail and tourism-related stocks. The Topix index fell 0.8% to 3,333.98, while the Nikkei weakened 0.9% to 49,942.24 at the start of trading in Tokyo.
The decline was triggered by China's warning to students seeking to study in Japan of increased risks to their citizens, after Prime Minister Sanae Takaichi's comments on Taiwan sparked diplomatic friction. This sentiment immediately hit stocks that rely on tourist arrivals and spending from China.
Market analysts said the current Japan-China tensions are negatively impacting inbound stocks such as retail, travel, and hospitality companies that have historically benefited from Chinese tourist visits. Investors are tending to reduce exposure to these sectors while awaiting clarity on developments in relations between the two countries.
Meanwhile, financial stocks actually strengthened after major Japanese banks raised their annual profit projections to new records and announced share buyback plans. However, overall, selling pressure remained dominant: of the 1,672 stocks on the Topix, only 424 rose, 1,169 fell, and 79 remained unchanged, with Sony Group being one of the index's main drags, falling 3.1%. (Asd)
Source: Newsmaker.id
