Japan shares end lower on gloomy earnings, Sino-U.S. tensions

  • Reuters
  • Stock Market News
Japan shares end lower on gloomy earnings, Sino-U.S. tensions
Credit: © Reuters.

TOKYO, Aug 7 (Reuters) - Japanese shares ended lower on Friday as Sino-U.S. tensions heightened following a U.S. ban on transactions with China's tech firms, while a raft of lacklustre domestic earnings and caution ahead of key U.S. jobs data also weighed.

The benchmark Nikkei share average .N225 fell 0.39% to 22,329.94.

Tokyo shares tracked China and Hong Kong stocks lower in the afternoon, as the Trump administration unveiled bans on U.S. transactions with ByteDance's TikTok and Tencent-owned WeChat, stoking fears that a "silicon curtain" is emerging between the two superpowers. stock markets will be closed on Monday for a public holiday.

U.S. non-farm payroll due later in the day is widely expected to show that jobs creation in the United States slowed in July from the prior month, indicating a resurgence in COVID-19 infections is undermining the world's largest economy. Corp 3436.T , which produces equipment for making semiconductors, slid 8.97% after reporting a 26.8% decline in its January-September net profit.

SUMCO's fall pulled down peer Advantest Corp 6857.T by 4.77%, while Screen Holdings Co Ltd 7735.T lost 3.05%.

Shiseido Co Ltd 4911.T. slumped 8.64% after the cosmetics firm forecast a net loss and lower dividend for the full year. analysts argue that the decline in corporate profit has bottomed out and earnings will gradually recover, as game and electronic commerce industries saw a surge in demand from people staying indoors during the lockdown.

Nintendo Co Ltd 7974.T rose 2.58% after posting a five-fold jump in quarterly profit.

Square (NYSE: SQ ) Enix Holdings Co Ltd 9684.T spiked 12.4% and marked a record high after the gaming company posted a 241.4% increase in its operating profit for the three-month period ended June 2020.

Mercari Inc 4385.T also jumped 10.94% to its highest level since June 2018, as the flea market app operator logged a better-than-expected operating loss for the year ended June 30.

The broader Topix .TOPX lost 0.2% to 1,546.74.

($1 = 105.5500 yen)

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