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Japanese Market Extends Losses

The Japanese stock market is declining on Friday, extending losses from the previous session, following the negative cues overnight from Wall Street in volatile trade amid worries about rising interest rates and escalating trade wars.

The benchmark Nikkei 225 Index is losing 82.77 points or 0.37 percent to 22,508.09, rising from a low of 22,323.43 in early trades. Japanese shares hit a one-month low on Thursday.

The major exporters are mostly lower despite a slightly weaker safe-haven yen. Mitsubishi Electric and Sony is declining more than 1 percent each, while Panasonic is down almost 1 percent. Canon is adding 0.3 percent.

Among auto makers, Toyota is adding 0.2 percent, while Honda is losing almost 1 percent. In the banking sector, Mitsubishi UFJ Financial is lower by more than 2 percent and Sumitomo Mitsui Financial is down 2 percent.

In the oil space, Japan Petroleum is falling almost 5 percent and Inpex is declining more than 1 percent after crude oil prices tumbled 3 overnight.

In the tech sector, Advantest is rising almost 3 percent and Tokyo Electron is advancing more than 1 percent.

Among the other major gainers, Trend Micro and Sumco Corp. is rising more than 3 percent each, while Mitsui Mining & Smelting, Screen Holdings and Cyberagent are higher by almost 3 percent each.

Among the other major losers, Dai-ichi Life is losing almost 5 percent, Sompo Holdings is down more than 4 percent and MS&AD Insurance is lower by almost 4 percent.

In economic news, the Bank of Japan said that the M2 money stock in Japan was up 2.8 percent on year in September, - coming in at 1,006.5 trillion yen. That was shy of expectations for 2.9 percent, which would have been unchanged from the August reading.

The M3 money stock was up an annual 2.5 percent to 1,337.7 trillion yen - in line with expectations and unchanged from the previous month. The L money stock gained 2.3 percent on year to 1,787.4 trillion yen - up from the 2.2 percent gain a month earlier.

Japan will also see August results for its tertiary industry index today.

In the currency market, the U.S. dollar is trading in the lower 112 yen-range on Friday.

On Wall Street, stocks closed sharply lower on Thursday in a volatile session even though strength in the bond market contributed to a significant drop by treasury yields. Even with the decrease by yields, traders remained concerned about the outlook for the interest rates as well as the escalating trade war between the U.S. and China.

The Dow plunged 545.91 points or 2.1 percent to 25,052.83, the Nasdaq slumped 92.99 points or 1.3 percent to 7,329.06 and the S&P 500 plummeted 57.31 points or 2.1 percent to 2,728.37.

The major European markets also showed substantial moves to the downside on Thursday. While the German DAX Index slumped by 1.5 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index both dove by 1.9 percent.

Crude oil prices tumbled to more than two-week lows on Thursday following the release of a report showing a much bigger than expected weekly increase in crude oil inventories. WTI crude oil for November delivery plunged $2.20 or 3 percent to $70.97 a barrel on the New York Mercantile Exchange.

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