Trump’s support for Hong Kong protesters drags Japanese shares lower

TOKYO- Japanese shares sunk down on Thursday following US President Donald Trump’s approval of the recently passed legislation supporting Hong Kong protesters. Such brought derailment in trade talks and reason for “phase one” to slide from happening.

The Nikkei share is marginally lower on Tuesday with 0.02% loss to 23,433.16 while the broader Topix shed 0.1% to 1,709.33.

China condemned the recently passed legislation of the United States backing up Hong Kong protesters. Chinese government viewed it as a gross interference in its affairs and a violation of the international law. In line, it declared to arm its sovereignty and security by creating counter-measures.

“In the near term, people are watching how China will react to Trump’s move,” said Masahiro Ayukai, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

“But there is little change in the view that the global economic sentiment is bottoming out,” he added.

Despite setbacks, some technology-related shares recorded a positive performance with Hitachi gaining 1.6% and set to reach its 1 1/2 –year high.

Kyocera inched higher with 2.1%, its best recorded mark since early 2018 while Fujitsu soared with 0.7% earnings, sealing its 10-year peak.

Panasonic increased with 2.6% gains following initial reports that the company was planning to let go of its small, money-losing semiconductor venture.

 Some defensive shares also declined as Central Japan Railway shed 1.3% and East Japan Railway inched down with 1.1%.

Japan Display lost 5.6% earnings following the panel maker’s statement of reviewing its previous gains. This happened after a former accounting executive exposed fraudulent accounting records which could be traced back to the former top management.

Small-to-mid-cap shares clocked in better with Tokyo Stock Exchange’s second-section index acquiring 0.7% earning, and Mothers Index of newbie firms with 0.2% increase.