The Japanese stock market is extending losses on Monday from the previous session as another sell-off on Wall Street Friday amid concerns of a full-blown trade war between the U.S. and China weighed on investor sentiment.
In late-morning trades, the benchmark Nikkei 225 Index is declining 178.98 points or 0.87 percent to 20,438.88, off a low of 20,347.49 in early trades.
The major exporters are weak. Panasonic is lower by more than 2 percent, Sony is declining almost 2 percent, Mitsubishi Electric is losing 0.6 percent and Canon is down 0.5 percent.
Among the major automakers, Toyota is losing more than 2 percent and Honda is declining 1 percent. In the banking sector, Mitsubishi UFJ Financial is down more than 1 percent and Sumitomo Mitsui Financial is lower by almost 1 percent.
In the oil space, Inpex is advancing 1 percent and Japan Petroleum Exploration is rising more than 2 percent after crude oil prices gained more than 2 percent on Friday.
Among the market's best performers, Oji Holdings is rising more than 2 percent, while MEIJI Holdings and Credit Saison are advancing almost 2 percent each.
On the flip side, Ricoh Co. is losing almost 5 percent, Kansai Electric Power and Sumco Corp. are down more than 4 percent each.
In the currency market, the U.S. dollar is trading in the upper 104 yen range on Monday.
On Wall Street, stocks closed sharply lower in a volatile session on Friday as lingering trade war concerns weighed on the markets after China said it would impose tariffs on up to $3 billion worth of U.S. goods in retaliation for the tariffs announced by President Donald Trump. Traders were also digesting a mixed batch of U.S. economic data, with separate reports from the Commerce Department showing a jump in durable goods orders but a drop in new home sales.
The Dow tumbled 424.69 points or 1.8 percent to 23,533.20, the Nasdaq plunged 174.01 points or 2.4 percent to 6,992.67 and the S&P 500 slumped 55.43 points or 2.1 percent to 2,588.26.
The major European markets also moved to the downside on the day. While the U.K.'s FTSE 100 Index fell by 0.4 percent, the French CAC 40 Index and the German DAX Index tumbled by 1.4 percent and 1.8 percent, respectively.
Crude oil prices rose on Friday after Saudi Arabia said output cuts would be extended into 2019. May WTI crude gained $1.58 or 2.5 percent to $65.88 a barrel on the New York Mercantile Exchange.