Tokyo stocks close down on geopolitical concerns, yen's rise hits exporters

Source: Xinhua| 2017-09-04 16:09:18|Editor: An
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TOKYO, Sept. 4 (Xinhua) -- Tokyo stocks closed lower on Monday as market sentiment was dampened once again as geopolitical tensions spiked on the Korean Peninsular over the weekend, sending investors away from riskier assets and into safe havens.

The 225-issue Nikkei Stock Average dropped 183.22 points, or 0.93 percent, from Friday to end the day at 19,508.25.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, lost 16.04 points, or 0.99 percent, to close at 1,603.55.

Marine transportation, information and communication, and pharmaceutical-related stocks comprised those that declined the most by the close of play, with falling issues beating rising ones by 1,824 to 153 on the First Section.

Traders here said that heightened geopolitical concerns in the region saw investors steer away from riskier assets such as stocks and into safe havens including gold and the Japanese yen.

They added that yen buying drove up its value against a basket of other major currencies and sent shares reliant on a weaker yen, like exporters, lower.

Japan's export-linked shares rely on a weaker yen to increase their profitability and competitiveness in overseas markets. A fall in export shares tends to drag down the broader market, local brokers added.

On the main section on Monday, 1,595.79 million shares changed hands, dropping from Friday's volume of 1,630.44 million shares.

The turnover on the first trading day of the week came to 1,736.9 billion yen (15.87 billion U.S. dollars).