Nikkei hits 3-week low on China worries

Reuters TOKYO (Reuters) — The Nikkei fell to a three-week low on Tuesday after shares of firms with big exposure to China languished on worries about its economy while chip equipment makers tumbled, tracking weakness in U.S. tech firms overnight.

The Nikkei share average ended 1.3 percent lower to 23,469.39, the weakest closing level since Sept. 18.

Markets in Japan were closed for a holiday on Monday, when Chinese stocks tumbled and the yuan weakened on growing fears the economic impact of the Sino-U.S. trade war will deepen.

Analysts also said rising U.S. yields, which would reduce the allure of stocks, triggering a sell-off in Japanese futures. In Asian trade, U.S. 10-year Treasury yields hit a fresh seven-year high of 3.252 percent.

“There is a concern in the market now which was not seen when the 10-year U.S. Treasury yield was trading around 2.8 percent,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities, adding that when U.S. yields keep rising, stocks with high valuations come under pressure.

“The market got caught off-guard by that.”Speech

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