TOKYO, Aug 18 (Reuters) – Japan’s Nikkei shares edged lower on Friday amid worries about China’s economic outlook and rising yields, while gains in Chinese stocks lifted sentiment.
The Nikkei index was down 0.19% at 31,565.21 at the midpoint break, down 1.1% in the previous session. The Nikkei is poised to lose for a third consecutive session and is down 2.8% on the week.
The broader Topix lost 0.42% to 2,243.56 and is on course to lose 2.6% for the week.
„The Japanese market slipped in the last few sessions for similar reasons – worries about the economy in China and rising global yields. With no market-moving catalysts in Japan at the moment, Japanese stocks were easily affected by foreign cues,” Shuji said. Hosoi is a senior strategist at Daiwa Securities.
„Nikki pared most losses as declines in Chinese stocks appear to have paused.”
Overnight benchmark 10-year US Treasury yields hit their highest level since October and the 30-year yield hit a 12-year high on worries the Federal Reserve will keep interest rates on hold for longer.
Weakness in US stocks also weighed on sentiment, said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.
Overnight, Wall Street ended lower, with the Nasdaq down 3.4% in three days, its deepest three-day drop since February.
„The Nikkei index has already peaked as foreign investors’ buying momentum has weakened since July,” Ikeda said.
Among individual stocks, Uniqlo brand owner Fast Retailing lost 0.6% and was the biggest drag on the Nikkei.
Chip-related heavyweights Advantest and Tokyo Electron gained 2.64% ad 1.44% respectively to provide the biggest support to the Nikkei.
Of the 225 Nikkei components, 72 stocks rose, 152 fell and one was flat. (Reporting by Junko Fujita; Editing by Rashmi I)
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