TOKYO - Shares of Japanese automation machinery makers, construction firms and suppliers to Apple Inc. have borne the brunt of recent selling in the country’s stock market after an escalation in U.S.-Sino trade tensions.
Adding to the pressure on Asian equity markets, surprisingly weak Chinese data on Wednesday pointed to slower growth in the world’s second-largest economy, a big market for Japan.The company saw a significant drop in its China sales for the fiscal year ended March 2019. China now accounts 19% of its overall sales, down from 30% a year ago.
“Machinery and exporters’ stocks are the most hit and will likely stay pressured in the next 2-3 months,” said Naoki Kamiyama, chief strategist at Nikko Asset Management. According to BoFA Merrill, global fund managers’ Japan equity allocation showed that global investors have no plan to go overweight on Japan over the next 12 months as the profit outlook for Japanese equities has continued to deteriorate.
Japan supports the US. They have been hurt by dishonest, unchecked Chinese trade practices more than anyone else.
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