Japanese stocks drop to 1-1/2-week low on Wall Street rout, firmer yen

SYDNEY, June 12 (Reuters) - Japanese shares skidded to
1-1/2-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 settled 0.75% lower at
22,305.48, its weakest close since June 1, erasing some of the
earlier losses on a positive lead from U.S. futures.
For the week, the Nikkei was down 2.4%, logging its biggest
decline in seven weeks.
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%. However, E-Mini futures for
the S&P 500 ESc1 were last quoted up 1.4%. .N MKTS/GLOB
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 Honda Motor 7267.T shedding 1.8%
and Subaru 7270.T falling 1.2%.
"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 1.15% to 1,570.68, also its
lowest close since June 1, with all but one of the 33 sector
sub-indexes on the Tokyo exchange finishing lower.
Highly cyclical mining .IMING.T , metal products .IMETL.T
and non-ferrous metals .INFRO.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 fell 2.4% and 4.1%, respectively,
as oil prices extended heavy overnight losses. O/R
Nichiigakkan 9792.T advanced 3.7% after Hong Kong-based
investment fund LIM Advisors said in a letter to management that
Bain Capital's tender offer "substantially" undervalued the
nursing home operator.