Nikkei dips on profit taking, weak yuan fears ebb for now
By Shinichi Saoshiro
TOKYO Aug 14 (Reuters) - Japan's Nikkei share average dipped on Friday on profit taking and sliding oil prices, although fears of severe weakening in the Chinese yuan continued to wane for now, cushioning the losses.
The Nikkei slid 0.2 percent to 20,557.21 with index heavyweight Fast Retailing shedding 0.6 percent.
The Nikkei was on track for a decline of about 0.8 percent this week.
"The previous day's (0.9 percent) rise prompted profit taking before the weekend. Extreme fears over China are receding, but that does not mean that concerns over the Chinese economy have faded," said Hiroichi Nishi, equity general manager at SMBC Nikko Securities in Tokyo.
After guiding the currency sharply lower through the week, the People's Bank of China on Friday set the yuan's midpoint at a slightly higher level. This was in line with its statement the previous day that there was no basis for further currency weakening.
Global equity markets were buffeted earlier this week when China declared that it would allow a steep fall in the yuan, generating fears of a resulting currency war.
As the yuan's slide slowed for now, companies linked with inbound tourism received some respite.
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