TOKYO, Japan (AFP) — Tokyo’s benchmark stock index fell to its lowest level in almost four months Monday on concerns about Donald Trump’s stalled economic agenda and as South Korea and the US kicked off annual war games that anger Pyongyang.
Investors are fretting over the outlook for Trump’s plans on tax reform and other market-friendly measures, as his support from corporate America evaporated following a heavily criticized response to a white supremacist rally.
“Uncertainty over Trump’s policy management and wariness over geopolitical risks may keep investors in a wait-and-see mode,” Yutaka Miura, a senior technical analyst at Mizuho Securities, told Bloomberg News.
Tokyo’s Nikkei 225 fell 0.40 percent, or 77.28 points, to 19,393.13, its lowest finish since May 1, while the Topix index of all first-section issues was down 0.14 percent, or 2.17 points, at 1,595.19.
Tens of thousands of South Korean and US troops are taking part Monday in joint military drills, a largely computer-simulated exercise that runs for two weeks in the South.
The annual exercises are viewed by nuclear-armed Pyongyang as a highly provocative rehearsal for invasion, and it always meets them with threats of strong military counteraction.
Investor jitters pushed up the safe-haven yen, which is a negative for Tokyo shares as it hurts the profit outlook for exporters.
The dollar weakened to 109.12 yen in Tokyo against 109.22 yen late Friday.
Videogame giant Nintendo was down 0.99 percent to end the day at 35,740 yen, while Sony fell 1.01 percent to 4,183 yen.
Banks were lower, with Mitsubishi UFJ losing 1.29 percent to finish at 670.6 yen while rival Sumitomo Mitsui Financial slipped 0.73 percent to 4,067 yen.
Uniqlo clothing operator Fast Retailing, a market heavyweight, dropped 1.33 percent to 30,930 yen.
© Agence France-Presse