Tokyo stocks lower

Tokyo stocks closed down on Monday as the yen rose, with investors wary after lower-than-expected US economic growth figures and renewed tensions over North Korea's ICBM programme. The dollar came under pressure after the US on Friday reported 2.6 percent growth in second-quarter gross domestic product, more than double the expansion of the first three months but still short of expectations.
The benchmark Nikkei 225 index edged down 0.17 percent, or 34.66 points, to 19,925.18, closing at its lowest level in six weeks. The Topix index of all first-section issues dropped 0.16 percent, or 2.61 points, to 1,618.61. "The (stronger) yen weighed on the market," said Toshihiko Matsuno, chief strategist at SMBC Friend Securities. On the other hand, it was "propped up by selective buying that went to companies which reported strong earnings", he told AFP.
The dollar was trading at 110.60 yen on Monday, down from 110.71 yen in New York on Friday afternoon and 111.02 yen in Tokyo earlier. A strong yen worsens the outlook for Japanese exporters and often drags down their stock prices as it reduces the value of repatriated profits. The yen's strength also resulted from safe-haven buying on intensifying tensions over North Korea, as the US carried out a successful test of its missile defence system in a pointed show of force after Pyongyang's latest ICBM launch late Friday.
In Tokyo stock trading, Hitachi, which reported robust April-June profits on Friday, jumped 5.33 percent to 759.6 yen. Takeda Pharmaceutical rose 3.40 percent to 5,832 yen, also following its announcement of strong earnings. Japan Tobacco fell 1.56 percent to 3,834 yen after US health officials said they would explore ways to cut nicotine levels in cigarettes. Toshiba shook off early losses to close up 2.84 percent at 246 yen on the eve of its demotion to the second section of the Tokyo Stock Exchange from the prestigious first section.
The Japanese conglomerate is struggling to restructure after huge losses in its US nuclear business. SoftBank fell 2.29 percent to 8,958 yen after news reports that US cable company Charter Communications snubbed a merger offer by Sprint, the US wireless carrier controlled by SoftBank. Nonetheless, SoftBank boss Masayoshi Son is planning to make a direct offer to Charter this week to combine business with Sprint, Bloomberg News quoted a person with knowledge of the matter as saying. Mitsubishi Heavy fell 3.55 percent to 439.3 yen after its earnings disappointed.