Japanese shares dip on U.S. Fed's gloomy economic outlook

TOKYO, Aug 20 (Reuters) - Japanese shares ended lower on
Thursday, tracking Wall Street's losses, as the U.S. Federal
Reserve's minutes showed that policymakers were concerned about
the uncertain path of economic recovery from the coronavirus
pandemic.
The benchmark Nikkei share average .N225 fell 1% to
22,880.62, its lowest since August 12.
The broader Topix .TOPX lost 0.9% to 1,599.20, also
hitting a one-week low.
All but three of the 33 sector sub-indexes on the Tokyo
exchange traded lower.
The market's losses were extended in the afternoon, taking
cues from weaker Asian peers and e-mini futures for the S&P 500.
"With earnings season over, the market is waiting for new
factors," said Takashi Hiroki, chief strategist at Monex
Securities.
Minutes from the Fed's July 28-29 meeting published on
Wednesday showed policymakers judged that the swift rebound in
employment seen in May and June had likely slowed and that
additional "substantial improvement" in the labour market would
hinge on a "broad and sustained" reopening of business activity.
Following the Fed's minutes, Wall Street retreated to close
lower, while the dollar put on the biggest one-day surge since
March. .N FRX/
The yen weakened to last trade at 106.05 per dollar, which,
analysts said, supported the Japanese market from further
declines.
Shares of semiconductor-related companies underperformed, as
investors worried over Washington's expansion of curbs on
China's Huawei HWT.UL , while the Philadelphia semiconductor
index lost 0.63% overnight .SOX . Screen Holdings Co Ltd 7735.T slumped 5.18%, while Tokyo
Electron Ltd 8035.T and Advantest Corp 6857.T fell 3.32% and
3.59%, respectively.
The Mothers Index .MTHR of start-up firms' shares lost
0.98%, a day after it rallied to a two-year high.
Panasonic 6752.T rose 1.51% following media reports of the
company's $100 million investment to boost its battery
production capacity for Tesla TSLA.O .
Hitachi Metals 5486.T soared 7.2% after Nikkei Business
reported about Hitachi Ltd's 6501.T plan to sell the company.
Hitachi Ltd edged up 0.68%.