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Japanese Market Declines

The Japanese stock market is declining on Thursday despite the positive cues overnight from Wall Street after media reports indicated that U.S. President Donald Trump plans to delay tariffs on auto imports.

Worries about trade tensions continued to weigh following news that Trump has signed an executive order that prohibits U.S. companies from using foreign information technology and services deemed a national security risk, with the move seen as appearing to target Chinese tech giant Huawei.

The benchmark Nikkei 225 Index is losing 185.39 points or 0.87 percent to 21,003.17, after touching a low of 20,951.67 earlier. Japanese shares rose on Wednesday to snap a seven-day losing streak.

The major exporters are lower on a stronger yen. Sony is losing more than 2 percent, while Panasonic and Mitsubishi Electric are declining more than 1 percent each. Canon is down 0.6 percent.

Shares of Japan Display are losing 8 percent after the supplier for tech giant Apple reported a ninth consecutive quarterly loss and also said it will cut about 1,000 jobs.

Among tech stocks, Advantest is losing almost 5 percent and Tokyo Electron is declining more than 2 percent. In the auto space, Toyota is lower by more than 1 percent and Honda is losing almost 1 percent despite news that Trump plans to delay auto tariffs.

Among the major banks, Mitsubishi UFJ Financial is lower by more than 3 percent and Sumitomo Mitsui Financial is down almost 1 percent.

In the oil sector, Inpex is declining more than 2 percent and Japan Petroleum is losing more than 1 percent despite higher crude oil prices.

Among the other major gainers, Kajima Corp. is rising more than 4 percent, while Sumitomo Dainippon and NH Foods are higher by more than 3 percent each.

On the flip side, Dentsu is losing more than 8 percent, T&D Holdings is lower by more than 7 percent and Taiyo Yuden is declining more than 6 percent.

On the economic front, the Bank of Japan said that producer prices in Japan were up 0.3 percent on month in April, unchanged from the previous two months. On a yearly basis, producer prices climbed 1.2 percent - easing from 1.3 percent in the previous month.

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

On Wall Street, stocks closed higher on Wednesday, reflecting a positive reaction to reports President Donald Trump plans to delay imposing steep tariffs on auto imports. Media reports indicated Trump plans to delay imposing the auto tariffs by up to six months in order to allow negotiations to continue.

The Dow rose 115.97 points or 0.5 percent to 25,648.02, the Nasdaq jumped 87.65 points or 1.1 percent to 7,822.15 and the S&P 500 climbed 16.55 points or 0.6 percent to 2,850.96.

The major European markets also moved to the upside on Wednesday. While the French CAC 40 Index climbed by 0.6 percent, the U.K.'s FTSE 100 Index and the German DAX Index advanced by 0.8 percent and 0.9 percent, respectively.

Crude oil prices rose on Wednesday. WTI crude oil for June delivery added $0.24 to close at $62.02 a barrel on the New York Mercantile Exchange.

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