INSUBCONTINENT EXCLUSIVE:
TOKYO: Japan's Nikkei share average dropped on Friday as shares of automakers fell after Germany's Daimler cut its profit forecast citing
tariff concerns, while weak US economic data dampened investor sentiment.
The Nikkei fell 0.78 per cent to 22,516.83
The index is down 1.46 per cent this week
The auto index, down 1.58 per cent, was the worst performer on the board.
Daimler cut its 2018 profit forecast on fears of tariffs on
Mercedes Benz cars it exports from the United States to China.
Further, BMW said it was looking at "strategic options" amid the trade
dispute between the United States and China.
Toyota Motor Corp dropped 2.66 per cent, Honda Motor Co fell 1.97 per cent and Mazda Motor Corp
shed 0.73 per cent.
The Philadelphia Federal Reserve said its business conditions index fell to 19.9 in June, the lowest level since
November 2016, from 34.4 in May.
"The weak US economic data and trade war headlines are all hurting the Japanese market's sentiment and
prompting a sell-off in blue chip stocks," said Yoshinori Shigemi, global market strategist at JPMorgan Asset Management.
Earlier this week,
US President Donald Trump threatened to impose a 10 per cent tariff on $200 billion of Chinese goods while Beijing warned it would fight
back.
"People have started to seriously worry that the global economy will falter," Shigemi said.
Shippers also underperformed, with Mitsui
OSK Lines declining 0.94 per cent and Kawasaki Kisen falling 1 per cent on concerns that shipping demand will decline due to falling
commodity prices.
Conversely, consumer goods makers, which are relatively immune to global woes, attracted buying
Cosmetics maker Shiseido Co rose 0.72 per cent, Japan Tobacco added 1.07 per cent and diaper maker Unicharm Corp advanced 1.9 per cent.
The
broader Topix shed 0.33 per cent to 1,744.83
