TOKYO, Aug 20 (Reuters) - Japan's Nikkei stock average
extended its decline to a seven-month low on Friday, led by a
slump in shares with strong link to the global economy, while
Toyota Motor dragged its peers and affiliates lower.
The Nikkei share average fell 0.68% to 27,096.65 in
the morning session, hovering just above the year-to-date low of
27,002 on January 6.
The broader Topix dropped 0.4% to 1,889.61.
For the week, Nikkei is set to lose after two straight weeks
"The Dow fell for a third straight sessions and that has
prompted sell-offs in shares linked to the global economy," said
Takatoshi Itoshima, strategist at Pictet Asset Management.
"Japan is in a critical situation due to a resurgence of the
COVID-19 infections but so far it has managed to avoid a plunge
in the stock markets only because there was a support from the
robust U.S. markets."
Shippers fell the most among the Tokyo Stock
Exchange's 33 industry subindexes, with a drop of 6.15%.
Auto and parts makers extended losses after
Toyota Motor said it would cut its global production by
40% next month.
Toyota fell 2.04%, while Honda Motor lost 3.43% and
Nissan Motor dropped 5.07%.
Toyota's affiliates Denso tumbled 7.09% while Aisin
Chip-related shares were also weak despite gains in their
U.S. peers after chip maker Nvidia Corp's forecast of
third-quarter revenue beat Wall Street's expectations.
Advantest snapped earlier gains to fall 0.45%,
while Tokyo Electron just edged up 0.02%.
Daiichi Sankyo gained the most among the top 30
core Topix names, with a gain of 3.52 %, followed by Nintendo
, which rose 1.49%.
Honda Motor was the worst performer among the top 30 core
Topix names, Mitsui & Co, losing 3.33%.
(Reporting by Junko Fujita; Editing by Krishna Chandra Eluri)