Japan's Nikkei dips as U.S.-China tensions escalate

  • Reuters
  • Stock Market News
Japan's Nikkei dips as U.S.-China tensions escalate
Credit: © Reuters.

* Nikkei sheds 0.16% on Fri, posts 3rd straight weekly loss

* Tech sector hit by Washington's Huawei ban

* Slide in crude prices hits trading houses, oil companies

By Hideyuki Sano

TOKYO, May 24 (Reuters) - Japan's Nikkei share average dipped on Friday as escalating tensions between Washington and Beijing over trade and technology firms weighed on investor appetite.

The Nikkei ended the day 0.16% lower at 21,117.22 .N225 , posting its third consecutive weekly loss.

U.S. President Donald Trump said on Thursday U.S. complaints against Huawei Technologies Co Ltd HWT.UL might be resolved within the framework of a U.S.-China trade deal, while at the same time calling the Chinese telecommunications giant "very dangerous." market mood isn't good. To be sure, there remain hopes that the two countries' relations could suddenly improve, so a lot of investors are taking a wait-and-see stance. But it is hard to deny the situation is deteriorating," said Masayuki Doshida, a senior market analyst at Rakuten Securities.

Panasonic 6752.T dropped 1.8%, a day after the company said it stopped shipments of certain components to Huawei to comply with U.S. regulations, although its China website said it continued to supply the Chinese company normally. maker Canon 7751.T shed 3.4% and Tokyo Electron 8035.T retreated 2.4%.

Electronic parts maker Murata Manufacturing 6981.T crawled back 1% after its fall to a 2-1/2-year low earlier in the day prompted some bargain-hunting. Still, it is down almost 25% so far this month.

Elsewhere, a tumble in oil prices the previous day hit energy-related shares and trading houses.

Mitsui Co 8031.T fell 1.2%, while fellow trading company Marubeni Corp 8002.T lost 0.9%.

Oil refiner Idemitsu Kosan 5019.T fell 3.9%. Petroleum and natural gas developers Inpex 1605.T and JXTG Holdings 5020.T dropped 4.7% and 3.7%, respectively.

Oil prices have suffered their steepest weekly losses so far this year as trade tensions fanned worries about a major downturn in the global economy. Brent crude futures LCOc1 sank nearly 5% on Thursday. The contract last traded at $68.61 per barrel, up 1.2% on the day, trimming a bit of Thursday's steep losses.

The broader Topix .TOPX inched up 0.04% to 1,541.21.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100