Japanese shares extend losses on lingering growth fears

Published 16/08/2019, 03:10
Updated 16/08/2019, 03:20
© Reuters.  Japanese shares extend losses on lingering growth fears

By Shinichi Saoshiro

TOKYO, Aug 16 (Reuters) - Japanese shares extended their

losses on Friday morning as global recession worries offset

much of the relief stemming from an overnight rebound in Wall

Street stocks.

Still, overall losses were contained with the Nikkei share

average .N225 down 0.27% at 20,351.26 as of 0149 GMT. The

Index fell 1.2% in the previous session.

The Nikkei has lost 1.5% this week, during which an

inversion of the U.S. Treasury yield curve -widely regarded as a

recession signal- triggered a global sell-off in riskier assets.

The fears of a sharp downturn in growth have mainly been fed

by a protracted Sino-U.S. trade war, which has already disrupted

supply chains and hit export-reliant economies like Japan.

Index heavyweights including staffing and recruitment agency

Recruit Holdings Co 6098.T and casual clothing chain store

operator Fast Retailing Co 9983.T shed 3.7% and 0.7%,

respectively.

Financial shares remained under pressure, with this week's

sharp drop in bond yields seen hurting their profitability.

Sumitomo Mitsui Financial Group 8316.T was down 0.7% and

Mitsubishi UFJ Financial Group 8306.T shed 0.5%.

Exporters fared a little better as the yen's advance against

the dollar stalled. Toyota Motor Corp 7203.T edged up 0.15%,

Panasonic 6752.T added 0.4% and Hitachi 6501.T gained 0.3%.

Semiconductor manufacturer Renesas 6723.T climbed 1.5%

after its U.S. peers such as Applied Materials Inc AMAT.O and

Nvidia Corp NVDA.O posted upbeat results.

Other tech-related shares also gained, with Tokyo Electron

8035.T rising 1.8% and Toshiba Corp 6502.T adding 1.3%.

The broader Topix .TOPX edged down 0.09% to 1,482.54.

(Editing by Shri Navaratnam)

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