Nikkei snaps 6-day losing streak on upbeat Japan GDP, trade worries remain
* Supported by Japan Q2 GDP revised up to 3.0 pct from 1.9
* Insurers gain after U.S. data boosts bond yields
* Automakers capped by worries about Trump's trade stance on
* Semi-conductor shares fall sharply for second day
By Hideyuki Sano
TOKYO, Sept 10 (Reuters) - Japan's Nikkei share average
snapped a six-day losing streak on Monday after robust revised
GDP data countered head winds from trade war worries, with
financials leading the gains on rise in U.S. bond yields after
strong jobs data.
Japan's Nikkei share average rose 0.30 percent to
22,373. The broader Topix gained 0.20 percent to
1,687.6, the first gains in eight sessions, with advancing
issues outnumbering declining ones 1,202 to 808.
Japan's second quarter economic growth was revised up to an
annualised 3.0 percent from a preliminary 1.9 percent thanks to
heavy capital spending, marking its fastest growth since 2016.
"Revised GDP figures were stronger than expected, led by
capital spending, which is very positive," said Soichiro Monji,
senior economist at Daiwa SB Investments.
Rise in U.S. bond yields following strong U.S. jobs data on
Friday, helped financial shares.
Insurers were the best performer, gaining 1.73
percent, with Dai-ichi Life up 2.35 percent and Japan
Post Insurance rising 2.25 percent.
Still, trade flows were slow, with the market's turnover
standing at 1.875 trillion yen, about 30 percent below the
average over the past year, as many investors were wary of
possible further escalation in U.S.-led global trade tensions.
U.S. President Donald Trump said on Friday that Tokyo knows
it is a big problem if a trade agreement cannot be reached while
he also upped the ante on China, threatening duties on virtually
all Chinese imports.
Concerns that Trump could target Japanese auto exports
weighed on Japanese carmaker shares.
The transport equipment maker index rose just
0.13 percent from one-year low hit on Friday. Toyota Motor
was down 0.03 percent while Honda Motor fell
"Whether Trump will impose tariffs on all of Chinese imports
and on automobiles from a wide range of countries are two most
important yardsticks on whether trade disputes become trade
wars," said Nobuhiko Kuramochi, chief strategist at Mizuho
Semi-conductor related shares suffered big losses for two
days in a row following concerns about NAND chip prices and a
warning on memory-chip shipments from U.S. KLA-Tenor Corp
Taiyo Yuden, one of the best performer so far this
year, fell 4.05 percent while Screen Holdings dropped
Advantest fell 2.41 percent.
(Editing by Shri Navaratnam)
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