Nikkei slips to 3-week low as trade worries haunt earnings

TOKYO, July 18 (Reuters) - Japan's Nikkei fell to three-week
lows early on Thursday as the country's dismal exports and weak
U.S. corporate earnings raised fresh worries about fallout from
the Sino-U.S. trade war.
The Nikkei share average .N225 fell 1.28% to 21,193.80,
hitting its lowest since June 27, while the broader Topix
.TOPX dropped 1.38% to 1,545.91, also hitting three-week lows.
"The earnings of global manufacturers will be soft for now.
Investors are on the sidelines and waiting to buy on dips only
if the Nikkei falls below 21,000," said Takashi Hiroki, chief
strategist at Monex Securities.
Cyclical shares led the losses, with electric machinery
shares .IELEC.T falling 1.8%. Hitachi 6501.T was down 2.2%
while Panasonic 6752.T shed 2.1%.
As the U.S. earnings season kicked off, weak results from
railway transport company CSX Corp CSX.O stoked concerns that
the protracted trade standoff between the United States and
China could hurt the profits of U.S. companies
The outlook is seen even bleaker in Japan as companies
struggle with the U.S.-China tariff war amid deteriorating
global conditions that have dragged on its exports.
Japan's exports to China dropped more than 10% from a year
earlier, its sixth fall in the past seven months, trade data
showed on Thursday. Canon 7751.T fell 2.8% after the Nikkei business daily
reported its operating profit was on track to sink 40% this
year. NOK Corp 7240.T fell 6.6% after the manufacturer of seal
products slashed its earnings outlook, cutting its annual
operating profit estimates by 34% on weak sales of car-related
products in North America and China.
Elsewhere, Akebono Brake Industry Co Ltd 7238.T hit
limit-high, rising 43% after the troubled car parts maker said
it expects to receive investment from a corporate turnaround
fund to help restructure its money-losing business.