Japan shares end lower on U.S.-China worries, Fed chief's speech eyed

By Stanley White
TOKYO, Aug 27 (Reuters) - Japanese shares closed lower on
Thursday, with consumer discretionary and telecommunications
stocks leading the declines, as investors were worried about
U.S.-China relations and awaited a speech by U.S. Federal
Reserve chairman.
The Nikkei 225 Index .N225 ended down 0.35% at 23,208.86,
while the broader Topix index .TOPX fell 0.53% to 1,615.89.
The United States blacklisted 24 Chinese firms and targeted
individuals it said were part of construction and military
actions in the South China Sea, while a U.S. defence official
said China had launched four ballistic missiles into the sea.
Meanwhile, Fed Chairman Jerome Powell will address the Fed's
annual central bankers' conference later in the day, usually
held in Jackson Hole, but being conducted virtually this year
because of the COVID-19 pandemic. He is expected to outline changes to the Fed's monetary
policy framework that will allow it to keep rates lower for
longer.
"The chance of a flare-up between China and the United
States is low, but these developments are just enough to put
some downward pressure on Asian equities," said Kiyoshi
Ishigane, chief fund manager at Mitsubishi UFJ Kokusai Asset
Management.
Also weighing on sentiment was a likely a press conference
by Japanese Prime Minister Shinzo Abe on Friday to address
concerns about his health.
The top underperformers on the Topix 30 were East Japan
Railway Co 9020.T down 2.56%, followed by insurer Tokio Marine
Holdings Inc 8766.T which shed 2.24%.
The stocks that gained the most among the top 30 core Topix
names were job placement company Recruit Holdings Co Ltd
6098.T up 5.62%, followed by Shin-Etsu Chemical Co Ltd
4063.T that rose 0.23%.
There were 45 advancers on the Nikkei index against 178
decliners.
The volume of shares traded on the Tokyo Stock Exchange's
main board .TOPX was 0.79 billion, compared with an average
1.16 billion in the past 30 days.