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Japanese Market Extends Losses

The Japanese stock market is losing on Monday and the safe-haven yen strengthened as worries about the escalating U.S.-China trade war more than offset the positive cues from Wall Street Friday. Trade talks between the two countries ended without a resolution and the U.S. hiked tariffs on $250 billion worth of Chinese goods on Friday.

The benchmark Nikkei 225 Index is losing 140.01 points or 0.66 percent to 21,204.91, after touching a low of 21,127.93 earlier. Japanese shares closed lower on Friday.

The major exporters are weak on a stronger safe-haven yen. Panasonic is losing almost 2 percent, Mitsubishi Electric is declining 1 percent, Canon is lower by 0.5 percent and Sony is edging down 0.2 percent.

Among tech stocks, Advantest and Tokyo Electron are down almost 2 percent each.
In the auto space, Toyota is adding 0.5 percent and Honda is edging down 0.1 percent.

Among the major banks, Mitsubishi UFJ Financial is lower by 2 percent and Sumitomo Mitsui Financial is down more than 1 percent.

In the oil sector, Inpex is declining 0.6 percent and Japan Petroleum is lower by more than 3 percent after crude oil prices extended losses in Asian trading Monday.

Among the other major gainers, Dena Co. is rising more than 15 percent, Pacific Metals is gaining more than 12 percent and Hitachi Zosen is higher by almost 10 percent.

On the flip side, Showa Denko is losing more than 5 percent, Toho Zinc is lower by almost 5 percent and Tosoh Corp. is declining more than 4 percent.

In the currency market, the U.S. dollar is trading in the upper 109 yen-range on Monday.

On Wall Street, stocks rebounded strongly on Friday after initially coming under pressure amid renewed concerns about the impact of a U.S.-China trade war after President Donald Trump followed through on his threat to raise tariffs on Chinese imports. The recovery came after Treasury Secretary Steven Mnuchin wrapped up a second day of trade talks, calling the discussions "constructive."

The Dow climbed 114.01 points or 0.4 percent to 25,942.37, the Nasdaq inched up 6.35 points or 0.1 percent to 7,916.94 and the S&P 500 rose 10.68 points or 0.4 percent to 2,881.40.

The major European markets turned mixed over the course of the session. The U.K.'s FTSE 100 Index dipped by 0.1 percent, while the French CAC 40 Index rose by 0.3 percent and the German DAX Index climbed by 0.7 percent.

Crude oil pared early gains to close lower on Friday amid fears of a prolonged trade war between the world's two largest economies. WTI crude for June dipped $0.04 to close at $61.66 a barrel on the New York Mercantile Exchange. Crude oil prices are down a further 0.5 percent in Asian trading Monday.

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