Nikkei falls on fresh trade worries; Renesas Electronics tumbles

  • Reuters
  • Stock Market News
Nikkei falls on fresh trade worries; Renesas Electronics tumbles
Credit: © Reuters.

* Renesas' plan for a big acquisition spurs financing concerns

* Tech shares fall, retail and food stocks rise

By Ayai Tomisawa

TOKYO, Sept 3 (Reuters) - Japan's Nikkei fell on Monday morning as renewed trade worries dented risk appetites, while Renesas Electronics tumbled on concerns about how it would finance its announced plan to purchase a U.S. chipmaker.

The Nikkei share average .N225 shed 0.4 percent to 22,785.20 in midmorning trade.

U.S. President Donald Trump said on Saturday there was no need to keep Canada in the North American Free Trade Agreement and warned Congress not to meddle with the trade negotiations or he would terminate the trilateral trade pact altogether. Fukunaga, chief executive of Investrust, said that with U.S.-Japan trade talks this month, "this news suggests a discouraging outlook for us," adding that many investors are staying on the sidelines for now.

He added that there are concerns that Trump will ask Japan to take specific steps to lower its trade deficit with the United States.

Tech shares were sold, with Tokyo Electron 8035.T falling 1.4 percent, Kyocera Corp 6971.T shedding 1.8 percent and Shin-Etsu Chemical 4063.T sliding 1.3 percent.

Renesas Electronics Corp 6723.T dropped 6 percent after saying it is considering buying U.S. chipmaker Integrated Device Technology Inc IDTI.O as it beefs up its business in chips for self-driving cars and seeks new growth areas. Nikkei business daily said that the deal could be worth as much as $6 billion. Traders said that the market is worried about how Renesas is going to finance such a large acquisition.

Retail and food stocks gained ground, with Seven & i Holdings 3382.T rising 0.9 percent and Kikkoman Corp

The broader Topix .TOPX dropped 0.6 percent to 1,725.14. (Editing by Richard Borsuk)

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