[TOKYO] Japan’s Nikkei share average slumped on Friday (Apr 11) in a brutal end to a volatile week as investors worried about the economic fallout from the rapidly escalating US-China trade war as well as a strong yen that has been lifted by safe-haven flows.
The Nikkei ended 2.96 per cent lower at 33,585.58 after declining as much as 5 per cent earlier in the session.
The broader Topix closed down 2.85 per cent at 2,466.91.
“Risk in equities is too high right now with such huge volatilities every day. The best thing to do, I would say, is to stay away from the market,” said Yusuke Sakai, a senior trader at T&D Asset Management.
The Nikkei started the week sliding to an 18-month low on Monday but then surged 6 per cent on Tuesday before slipping again on Wednesday. On Thursday it soared 9 per cent, its biggest one-day gain since August. The Nikkei lost 0.6 per cent for the week.
The sudden moves underscore investor restlessness as they try to gauge the risks from a raft of tit-for-tat tariff headlines.
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“Equities rise as long as companies grow, but I am afraid that the companies may not be able to disclose their outlook, and even if they do, it could be conservative. That may push the Nikkei to a new low,” said Sakai.
Japanese companies will start announcing their outlook for this fiscal year from the end of this month.
The dollar slumped 1 per cent to its lowest level since September 30 against the yen, as investors ditched US assets amid growth concerns.
A stronger Japanese currency tends to hurt shares of exporters, as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.
Uniqlo-brand owner Fast Retailing lost 2.04 per cent, and chip-testing equipment maker Advantest slipped 4.59 per cent.
Of the 225 Nikkei components, 22 stocks rose and 203 fell. REUTERS
