Japan shares end lower on gloomy earnings, Sino-U.S. tensions

TOKYO, Aug 7 (Reuters) - Japanese shares ended lower on
Friday as Sino-U.S. tensions heightened following a U.S. ban on
transactions with China's tech firms, while a raft of lacklustre
domestic earnings and caution ahead of key U.S. jobs data also
weighed.
The benchmark Nikkei share average .N225 fell 0.39% to
22,329.94.
Tokyo shares tracked China and Hong Kong stocks lower in the
afternoon, as the Trump administration unveiled bans on U.S.
transactions with ByteDance's TikTok and Tencent-owned WeChat,
stoking fears that a "silicon curtain" is emerging between the
two superpowers. Japan stock markets will be closed on Monday for a public
holiday.
U.S. non-farm payroll due later in the day is widely
expected to show that jobs creation in the United States slowed
in July from the prior month, indicating a resurgence in
COVID-19 infections is undermining the world's largest economy.
SUMCO Corp 3436.T , which produces equipment for making
semiconductors, slid 8.97% after reporting a 26.8% decline in
its January-September net profit.
SUMCO's fall pulled down peer Advantest Corp 6857.T by
4.77%, while Screen Holdings Co Ltd 7735.T lost 3.05%.
Shiseido Co Ltd 4911.T. slumped 8.64% after the cosmetics
firm forecast a net loss and lower dividend for the full year.
Some analysts argue that the decline in corporate profit has
bottomed out and earnings will gradually recover, as game and
electronic commerce industries saw a surge in demand from people
staying indoors during the lockdown.
Nintendo Co Ltd 7974.T rose 2.58% after posting a
five-fold jump in quarterly profit.
Square Enix Holdings Co Ltd 9684.T spiked 12.4% and marked
a record high after the gaming company posted a 241.4% increase
in its operating profit for the three-month period ended June
2020.
Mercari Inc 4385.T also jumped 10.94% to its highest level
since June 2018, as the flea market app operator logged a
better-than-expected operating loss for the year ended June 30.
The broader Topix .TOPX lost 0.2% to 1,546.74.

($1 = 105.5500 yen)