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Nikkei falls on US tariff report, snaps 8-day winning streak

TOKYO (Kyodo) -- The Nikkei index fell Friday, snapping an eight-day winning streak, as a report of additional U.S. tariffs on China raised concern over the two countries' trade dispute.

The 225-issue Nikkei Stock Average ended down 4.35 points, or 0.02 percent, from Thursday at 22,865.15. The broader Topix index of all First Section issues on the Tokyo Stock Exchange finished 3.79 points, or 0.22 percent, lower at 1,735.35.

Decliners were led by oil and coal product, insurance, and iron and steel issues.

The Nikkei briefly declined nearly 200 points in the morning after U.S. stocks fell following a four-day winning streak on a report that U.S. President Donald Trump wants to continue with imposing tariffs of up to 25 percent on an additional $200 billion in Chinese imports, brokers said.

"Japanese companies doing business in China drew selling amid concern China's economy will be immensely affected by (potential additional) tariffs on such a big amount," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities Co., adding, "The effect (on the economy) is likely to be shown after six months post imposition."

Among companies with relatively large operations in China, industrial robot maker Fanuc dropped 440 yen, or 2 percent, to 21,775 yen, while construction machinery manufacturer Komatsu was down 29 yen, or 0.9 percent, to 3,161 yen.

But the Nikkei briefly moved into positive territory on relatively limited losses in Chinese stocks after China's manufacturing data for August exceeded market projections.

"Chinese stocks' fall was not as sharp as the market had expected...prompting investors to buy back shares," Fujito added.

On the First Section, declining issues outnumbered advancers 1,253 to 736 with 115 ending the day unchanged.

Online gaming companies drew selling on a report that China's Ministry of Education said the country's publishing regulator should control the number of video games. Capcom slid 91 yen, or 3.4 percent, to 2,591 yen, while Nexon fell 28 yen, or 2 percent, to 1,394 yen.

Trading volume on the main section fell to 1,303.02 million shares from Thursday's 1,399.35 million shares.

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