Japan's Nikkei dips as U.S.-China tensions escalate

* Nikkei sheds 0.16% on Fri, posts 3rd straight weekly loss
* Tech sector hit by Washington's Huawei ban
* Slide in crude prices hits trading houses, oil companies

By Hideyuki Sano
TOKYO, May 24 (Reuters) - Japan's Nikkei share average
dipped on Friday as escalating tensions between Washington and
Beijing over trade and technology firms weighed on investor
appetite.
The Nikkei ended the day 0.16% lower at 21,117.22 .N225 ,
posting its third consecutive weekly loss.
U.S. President Donald Trump said on Thursday U.S. complaints
against Huawei Technologies Co Ltd HWT.UL might be resolved
within the framework of a U.S.-China trade deal, while at the
same time calling the Chinese telecommunications giant "very
dangerous."
"The market mood isn't good. To be sure, there remain hopes
that the two countries' relations could suddenly improve, so a
lot of investors are taking a wait-and-see stance. But it is
hard to deny the situation is deteriorating," said Masayuki
Doshida, a senior market analyst at Rakuten Securities.
Panasonic 6752.T dropped 1.8%, a day after the company
said it stopped shipments of certain components to Huawei to
comply with U.S. regulations, although its China website said it
continued to supply the Chinese company normally. Camera maker Canon 7751.T shed 3.4% and Tokyo Electron
8035.T retreated 2.4%.
Electronic parts maker Murata Manufacturing 6981.T crawled
back 1% after its fall to a 2-1/2-year low earlier in the day
prompted some bargain-hunting. Still, it is down almost 25% so
far this month.
Elsewhere, a tumble in oil prices the previous day hit
energy-related shares and trading houses.
Mitsui Co 8031.T fell 1.2%, while fellow trading company
Marubeni Corp 8002.T lost 0.9%.
Oil refiner Idemitsu Kosan 5019.T fell 3.9%. Petroleum and
natural gas developers Inpex 1605.T and JXTG Holdings 5020.T
dropped 4.7% and 3.7%, respectively.
Oil prices have suffered their steepest weekly losses so far
this year as trade tensions fanned worries about a major
downturn in the global economy. Brent crude futures LCOc1 sank
nearly 5% on Thursday. The contract last traded at $68.61 per
barrel, up 1.2% on the day, trimming a bit of Thursday's steep
losses.
The broader Topix .TOPX inched up 0.04% to 1,541.21.