Japanese shares extend losses on lingering growth fears

Shutterstock photo

By Shinichi Saoshiro

TOKYO, Aug 16 (Reuters) - Japanese shares extended theirlosses on Friday morning as global recession worries offsetmuch of the relief stemming from an overnight rebound in WallStreet stocks.

Still, overall losses were contained with the Nikkei shareaverage .N225 down 0.27% at 20,351.26 as of 0149 GMT. TheIndex fell 1.2% in the previous session.

The fears of a sharp downturn in growth have mainly been fedby a protracted Sino-U.S. trade war, which has already disruptedsupply chains and hit export-reliant economies like Japan.

Index heavyweights including staffing and recruitment agencyRecruit Holdings Co 6098.T and casual clothing chain storeoperator Fast Retailing Co9983.T shed 3.7% and 0.7%,respectively.

Financial shares remained under pressure, with this week'ssharp drop in bond yields seen hurting their profitability.Sumitomo Mitsui Financial Group8316.T was down 0.7% andMitsubishi UFJ Financial Group8306.T shed 0.5%.

Exporters fared a little better as the yen's advance againstthe dollar stalled. Toyota Motor Corp7203.T edged up 0.15%,Panasonic 6752.T added 0.4% and Hitachi6501.T gained 0.3%.

Semiconductor manufacturer Renesas 6723.T climbed 1.5%after its U.S. peers such as Applied Materials IncAMAT.O andNvidia Corp NVDA.O posted upbeat results.

Other tech-related shares also gained, with Tokyo Electron8035.T rising 1.8% and Toshiba Corp6502.T adding 1.3%.

The broader Topix .TOPX edged down 0.09% to 1,482.54. (Editing by Shri Navaratnam) ((shinichi.saoshiro@thomsonreuters.com; +813-6441-1774))

This article appears in: Stocks , World Markets , Politics

More from Reuters


See Reuters News

Research Brokers before you trade

Want to trade FX?