Japan reached its lowest level in seven months as tensions between America and China rose

TOKYO (Reuters) – Japanese stocks fell to their lowest level since early January on Tuesday, motivated by the obsession with a total trade war between China and the US after Washington called Beijing monetary manipulator.

Although the market has reduced more than half of its previous losses, due to factors such as the stability of the Chinese yuan, investors remain cautious because of the growing uncertainty about the prospects of the economy. World.

The Nikkei benchmark <.N225> lost 0.65% to unofficially finish at 2.0855.31 after plunging 2.94% to its lowest level since January 10th. The broader TOPIX index lost 0.44% to 1,499.23 points.

The one-year US-China trade war is sharply worsening, with Washington accusing Beijing of manipulating its currency after China has allowed the yuan to fall to its lowest level in more than a decade.

Companies turning to global trade have been hard hit, with the yen reaching a seven-month high against the dollar.

Toyota Motor and Softbank, the world's two largest globally traded companies, fell 2.4% and 2.9% respectively.

Panasonic fell 2%, after dropping 4.2% to its lowest level in three and a half years, while Honda Motor dropped 0.2%, its lowest level in three years.

In addition, some commercial results had positive points.

Sentory Food and Beverages grew 5.1% after its profits for the period from April to June exceeded market expectations.

Subaru rose 8.1% after a good profit.

The volume of transactions reached 2,637 billion yen, more than 30% more than the average of last month.

(Reuters)