Japan Nikkei extends losses

Headline indices of the Japan share market were lower on Thursday, 06 September 2018, as risk aversion selloff continued on tracking mostly negative cues from Wall Street overnight, concerns over the extent of damage from a big earthquake in northern Japan and country's worst Typhoon Jebi. Total 31 issues out of 33 TSE index declined, with shares of Financial Business, Insurance, Precision Instruments, Air Transportation, Securities & Commodities Futures, Land Transportation, Pharmaceutical and Real Estate issues being notable losers. In late afternoon trade, the 225-issue Nikkei Stock Average declined 57.73 points, or 0.26%, to 22,523.10. The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, lost 9.38 points, or 0.55%, to finish at 1,695.58.

The northern Japanese island of Hokkaido has suffered a powerful earthquake just two days after Typhoon Jebi wreaked havoc across the country. A 6.6 magnitude earthquake struck 27 kilometres east of the city of Tomakomai on Hokkaido triggering widespread landslides that covered houses, blocked roads and left people trapped. An aftershock measuring 5.3 rocked the area moments later and smaller aftershocks followed throughout the night.

The quake follows the worst typhoon to have hit Japan in 25 years. Typhoon Jebi slammed into the western coast of Japan on Tuesday, killing at least 11 people, injuring many more, forcing evacuations and leaving millions of homes without power.

Trade-related concerns also weighed on the market, with the U.S. and Canada set to restart high-stakes efforts to resolve differences as they work toward recasting the North American Free Trade Agreement. Bilateral trade discussions have been tense at times, with President Donald Trump threatening over the Labor Day weekend to move forward without Canada if terms can't be agreed upon. On Tuesday, Canadian Prime Minister Justin Trudeau reiterated the country's view that no Nafta is better than a bad Nafta deal for Canadians, and that's what we are going to stay with.

The ongoing trade war between the U.S. and China could also intensify this week, with President Donald Trump reportedly saying over the weekend that he is ready to impose tariffs on an additional $200 billion worth of Chinese imports as soon as the public comment period ends on Thursday.

CURRENCY NEWS: Japanese yen was little changed in the mid-111 yen level against greenback. The dollar was quoted at 111.45-46 yen compared with 111.48-58 yen in New York and 111.45-46 yen on Wednesday in Tokyo.

OFFSHORE MARKET NEWS, US stock market closed softer on Wednesday, amid ongoing trade tensions between the U.S. and its key partners. The Dow Jones Industrial Average inched up 22.51 points or 0.1% to 25,974.99, while the Nasdaq tumbled 96.07 points or 1.2% to 7,995.17 and the S&P 500 fell 8.12 points or 0.3% to 2,888.60.

The major European stock markets ended down on Wednesday. The U.K.'s FTSE 100 Index slumped by 1%, while the German DAX Index and the French CAC 40 Index tumbled by 1.4% and 1.5%, respectively.

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