Tokyo shares hit 2-week low on Wall Street rout, stronger yen

SYDNEY, June 12 (Reuters) - Japanese stocks skidded to
two-week lows on Friday after Wall Street dived on fears that a
resurgence of COVID-19 infections could stunt the pace of
reopening economies.
The benchmark Nikkei average .N225 dropped 1.5% to
22,131.14 by the midday break, after hitting its lowest level
since May 29 earlier in the session.
For the week, the Nikkei was down 3.2%, poised for its
biggest decline in two months.
U.S. shares plummeted on Thursday as investors reacted to
renewed fears of a pandemic resurgence and digested dour
economic forecasts from the Federal Reserve, with all three
major indexes losing well over 5%. .N
In the currency market, the safe-haven yen stood firm on
renewed pessimism over a quick economic recovery, with the
dollar/yen JPY=EBS hitting 106.58 overnight, a level unseen in
a month. FRX/
As a stronger yen hurts Japanese manufacturers' profits made
abroad when repatriated, shares of export-oriented automakers
remained under pressure, with Subaru 7270.T shedding 3.5% and
Honda Motor 7267.T falling 2.5%.
"The ongoing steep correction shows you what type of
investors and money is playing in these markets and how fragile
the rally was," said Takeo Kamai, head of executions services at
CLSA in Tokyo.
The broader Topix .TOPX lost 1.8% to 1,560.16 by the
recess, after hitting a two-week low earlier, with all the 33
sector sub-indexes on the Tokyo exchange trading lower.
Highly cyclical non-ferrous metals .INFRO.T , mining
.IMING.T and sea transport .ISHIP.T were among the worst
performing sectors on the main bourse.
Oil and gas exploration companies Inpex 1605.T and Japan
Petroleum Exploration 1662.T tumbled 3.6% and 4.5%,
respectively, as oil prices extended heavy overnight losses.
O/R
Nichiigakkan 9792.T added 0.9% after Hong Kong-based
investment fund LIM Advisors said in a letter to management that
Bain Capital's tender offer "substantially" undervalued the
Japanese nursing home operator.