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Japanese Market Modestly Lower

The Japanese stock market is modestly lower on Monday following the weak cues from Wall Street Friday amid worries about the U.S.-China trade war on the tech sector. Investors are also cautious ahead of key central bank meetings by the U.S. Federal Reserve and the Bank of Japan later this week.

The benchmark Nikkei 225 Index is lower by 30.02 points or 0.14 percent to 21,086.87, after touching a low of 21,044.62 in early trades. Japanese shares rose on Friday, led by energy stocks.

Among tech stocks, Tokyo Electron is declining more than 3 percent and Advantest is losing almost 5 percent.

Shares of Japan Display are losing more than 5 percent after the company said Taiwanese electronics component maker TPK Holding, a member of the Taiwan-China consortium that planned to offer bailout funds to Japan Display, has notified that it will pull out of the consortium and forgo providing the funds.

Market heavyweight SoftBank is advancing more than 1 percent and Fast Retailing is adding 0.5 percent. In the auto space, Toyota Motor is lower by 0.3 percent and Honda Motor is edging down 0.1 percent.

The major exporters are mostly higher on a weaker yen. Sony is rising almost 3 percent, Panasonic is adding 0.2 percent and Canon is up 0.4 percent, while Mitsubishi Electric is declining more than 1 percent.

In the banking sector, Mitsubishi UFJ Financial is down 0.2 percent and Sumitomo Mitsui Financial is lower by 0.3 percent. In the oil sector, Inpex is losing 0.4 percent and Japan Petroleum is lower by more than 1 percent even as crude oil prices edged higher on Friday.

Among the major gainers, Tokyo Dome is rising more than 5 percent and Rakuten is higher by almost 3 percent.

On the flip side, Screen Holdings is losing more than 4 percent, while Mitsui E&S, Yaskawa Electric and TDK Corp. are all lower by almost 3 percent each.

Shares of Pepper Food Service Co. are losing more than 3 percent after the restaurant chain said Friday its American depositary receipts or ADRs will be delisted from the U.S. Nasdaq stock market by autumn. Pepper Food Service runs the Ikinari Steak restaurants.

In economic news, Japan will release May numbers for department store sales and Tokyo condominium sales today

In the currency market, the U.S. dollar is trading in the upper 108 yen-range on Monday.

On Wall Street, tech stocks came under pressure on Friday after Broadcom reported better than expected fiscal second-quarter earnings, but lowered its full-year revenue guidance. Comments from Broadcom President and CEO Hock Tan led to renewed concerns about the impact of the U.S.-China trade dispute on the broader tech sector.

The tech-heavy Nasdaq underperformed its counterparts, ending the session down 40.47 points or 0.5 percent at 7,796.66. The Dow edged down 17.16 points or 0.1 percent to 26,089.61 and the S&P 500 dipped 4.66 points or 0.2 percent to 2,886.98.

The major European markets also moved to the downside on Friday. While the German DAX Index slid by 0.6 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index dipped by 0.3 percent and 0.2 percent, respectively.

Crude oil prices rose on Friday amid an escalation in geopolitical tensions following the recent attacks on two oil tankers in the Gulf of Oman. WTI crude oil for July added $0.23 or about 0.4 percent to close at $52.51 a barrel on the New York Mercantile Exchange.

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