TOKYO, July 27 (Reuters) - Japanese shares dropped on Monday
due to worries about worsening ties between China and the United
States, with exporters taking a hit due to a firmer yen.
At the midday break, the benchmark Nikkei 225 index
was down 0.54% at 22,629.30. Markets in Japan were closed on
July 23 and July 24.
All but five of 33 sector sub-indexes on the Tokyo exchange
traded lower, with shippers, steel makers
and airlines leading the declines.
Investor sentiment was hit on further deterioration in
Sino-U.S. relations, following the tit-for-tat consulate
closures in both countries.
Meanwhile, U.S. Secretary of State Mike Pompeo said on
Thursday Washington and its allies must use "more creative and
assertive ways" to press the Chinese Communist Party to change
The tense backdrop underpinned the safe-haven yen, with the
currency rising to a four-month high of 105.68 yen to the dollar
over the long weekend.
Exporters Mitsubishi Motors shed 3.24%, Toshiba
Corp declined 2.45% and Fanuc Corp dropped
Among other individual shares, defence-related names gained
due to tensions between the two largest economies.
Mine manufacturer Ishikawa Seisakusho Ltd rallied
7.19%, while flare manufacturer Hosoya Pyro-Engineering Co Ltd
Semiconductor-related companies were bruised by a decline in
Intel Corp shares following a report about a delay in
its production of a 7-nanometer chip.
Screen Holdings Co Ltd slipped 3.25%, while Alps
Alpine Co Ltd and Disco Corp lost 3.05% and
The broader Topix was down 0.5% at 1,565.02.
(Reporting by Eimi Yamamitsu; editing by Uttaresh.V)