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Japan Nikkei extends losses on global growth worries

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Headline indices of the share market declined on Thursday, 06 December 2018, as risk aversion selloff continued after a dismal overnight session on Wall Street amid concerns about an economic slowdown in the and amid confusion over US-trade progress, and ahead of major events in coming days. Meanwhile selloff intensified after the arrest of the of Technologies Co in and is facing possible extradition to the U. S. for violating sanctions against trading with All 33 issues of the index declined, with shares in Electric Appliances, Precision Instruments, Pharmaceutical, Machinery, Chemicals, and Glass Securities & Commodities Futures issues being notable losers. In late afternoon trades, the 225-issue Nikkei index declined 462.33 points, or 2.11%, at 21,457. The broader index of all First Section issues on the shed 31.35 points, or 1.9%, to 1,609.14.

Global equity markets have been shaken and the dollar fell this week after an inversion in a part of the

triggered market concerns about economic growth. The spread between the two-year and five-year Treasury yields inverted this week and the two-year/10-year spread was at its flattest in more than a decade amid a sharp fall in long-term rates. A flatter curve is seen as an indicator of a slowing economy, with lower longer-dated yields suggesting that the markets see economic weakness ahead.

Investors are looking for progress on trade as well as clues to the future path of economic growth. U. S. said is sending very strong signals following trade discussions in Argentina, as uncertainty remains over what commitments were made between the two nations. Over the weekend, Trump agreed to suspend increases in tariffs on Chinese goods for 90 days, after a meeting with Chinese leader at the summit in

The Federal Reserve's Beige Book economic report showed fading optimism over prospects for growth at U. S. firms even as a majority of districts continued to report a modest expansion in recent weeks.

CURRENCY NEWS: The Japanese yen, which can be a haven during market uncertainty, strengthened against dollar, on concerns about growth in the world's largest and in the wake of reports that had arrested the of China's The arrest reignited concerns over the chances for a longer-term US-China deal on trade.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, December 06 2018. 09:45 IST