CORRECTED-Nikkei drops as trade war worries hurt machinery makers

  • Reuters
  • Stock Market News
CORRECTED-Nikkei drops as trade war worries hurt machinery makers

(Corrects company names to Mitsui OSK Lines and Kawasaki Kisen in 7th paragraph)

TOKYO, March 15 (Reuters) - Japan's Nikkei share average dropped on Thursday morning as machinery makers underperformed, hit by worries that global trade tensions could hurt demand after U.S. President Donald Trump sought to impose fresh tariffs on China.

The Trump administration is pressing China to cut its trade surplus with the United States by $100 billion, the White House said on Wednesday. Nikkei .N225 fell 0.8 percent to 21,605.76 in midmorning trade.

Analysts said that Trump's move could cut Chinese exports and capital expenditure, which could hamper demand for machinery made by Japanese firms, many of which have large exposure in China.

Construction machinery maker Komatsu Ltd 6301.T dropped 2.6 percent and Hitachi Construction Machinery 6305.T stumbled 3.6 percent.

Axle bearings maker NTN Corp 6472.T tumbled more than 5 percent, machine tool maker DMG Mori 6141.T dropped 3.5 percent and numeric control machine tool maker Okuma Corp 6103.T dived 5.4 percent.

Shippers .ISHIP.T tumbled after the Baltic Dry Index .BADI , or freight charges, fell. Mitsui OSK Lines 9104.T dropped 2.5 percent and Kawasaki Kisen 9107.T fell 2.2 percent.

The broader Topix index .TOPX dropped 0.6 percent to 1,732.02.

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