Nikkei ends at 1-week low on fresh trade tensions, growth woes

  • Reuters
  • Stock Market News
Nikkei ends at 1-week low on fresh trade tensions, growth woes
Credit: © Reuters.

* Japan Display tumbles after co says it had yet to reach agreement for tie-up with external party

* Suruga Bank soars after report it's talking to 4 firms for financial assistance

By Ayai Tomisawa

TOKYO, April 10 (Reuters) - Japan's Nikkei dropped to a one-week low on Wednesday as escalating trade tensions between the United States and Europe and worries about the global growth outlook sapped investor confidence.

U.S. President Donald Trump said he would impose tariffs on $11 billion of European goods, raising fears that differences over aircraft subsidies could morph into a wider trade war. helping the mood, the International Monetary Fund cut its global economic growth forecast and said a sharp downturn could require world leaders to coordinate stimulus measures. Nikkei share average .N225 ended 0.5 percent lower at 21,687.57, the lowest closing level since April 3.

All 33 of the Topix's subsectors were in negative territory, with cyclical machinery and technology stocks underperforming.

"While there were developments between the U.S. and China, the next thing the market is worried about is European tariff matters. This news is stoking concerns that the U.S. may target other regions in the future," said Nobuhiko Kuramochi, a strategist at Mizuho Securities.

Sony Corp 6758.T tumbled 2.5 percent, Hitachi Ltd 6501.T and TDK Corp 6762.T both dropped 1.6 percent and Nintendo Co 7974.T declined 1 percent.

Elsewhere, Japan Display Inc 6740.T dived 8.1 percent after saying it had yet to reach an agreement for a tie-up with an external party that it had said would be sealed by the first half of this week. in the opposite direction, Suruga Bank 8358.T jumped 16 percent after the Nikkei business daily reported that the bank is talking to four companies including Nojima Corp 7419.T and SBI Holdings 8473.T for financial assistance.

Japan Post Holdings 6178.T slumped 2.9 percent after Japan's Ministry of Finance said it is inviting banks to bid for a role in its third share sale in the holding company. broader Topix .TOPX dropped 0.7 percent to 1,607.66.

(Editing by Shri Navaratnam)

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