Japan's Nikkei slips on stronger yen, currency war jitters

  • Reuters
  • Stock Market News
Japan's Nikkei slips on stronger yen, currency war jitters

* Nikkei ends down 0.33%, Topix inches up 0.05%

* Exporters weighed by strong yen

* US-China currency war also a worry

* Sumco sinks, Renesas rallies as earnings divide fortunes

By Shinichi Saoshiro

TOKYO, Aug 7 (Reuters) - Japan's Nikkei fell on Wednesday as a stronger yen and fears of a global currency war prompted investors to sell riskier assets, though some upbeat corporate results and Wall Street's bounce helped curb losses.

The Nikkei stock average .N225 ended the day down 0.33% at 20,516.56 points.

"Gains by the yen and lingering concerns towards the U.S.-China trade and currency war weighed on the market. The yuan is still above the 7 per dollar and how currency issues pan out is a key concern," said Chihiro Ohta, equity general manager at SMBC Nikko Securities.

"That said, sellers are not entirely dominant as there were some solid corporate earnings as well."

Companies reliant on exports slipped as the yen JPY= remained strong against the dollar, staying close to a seven-month high scaled the previous day. The yen is typically seen as a safe-haven during times of market turmoil, and has firmed in recent sessions as the Sino-U.S. trade war suddenly escalated.

Honda Motor Co 7267.T lost 0.9%, Mitsubishi Electric Corp 6503.T shed 1.3% and TDK Corp 6762.T declined 2.2%.

Earnings reports also continued to buffet trading.

Sumco Corp 3436.T , a manufacturer of silicon wafers used in semiconductors, sank 9.3% after its operating profit fell 18.4% in Jan-June. Holdings Co 2503.T tumbled 5% after Japan's second-biggest brewer posted a net loss of 7.31 billion yen ($68.8 million) in the Jan-June period. the winners ledger, JVC Kenwood Corp 6632.T soared 15.6% as the maker of car audio and visual systems reported a 77.9% operating profit increase in the April-June quarter. Electronics Corp 6723.T climbed 7.8% after the semiconductor maker's Jan-June operating losses were not as large as anticipated. equipment manufacturer Yokogawa Electric Corp 6841.T added 4.9% on reporting an operating profit increase of 37.5% in April-June. Corp 4921.T rose 2.9% after Kirin Holdings said on Tuesday that it would take a 30.3% stake in the cosmetics company. broader Topix .TOPX inched up 0.05% to 1,499.93. Declining shares outnumbered gainers 1,060 to 1,003.

($1 = 106.2400 yen) (Editing by Kim Coghill)

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