TOKYO (Kyodo) — The Nikkei stock index fell for the fourth consecutive day Friday to end at a fresh three-week low, as a stronger yen pressured exporters and a sense of wariness prevailed before U.S. jobs data due out later in the day.
The 225-issue Nikkei Stock Average ended down 265.62 points, or 0.72 percent, from Thursday at 36,391.47, its lowest level since Aug. 13. The broader Topix index finished 23.34 points, or 0.89 percent, lower at 2,597.42.
On the top-tier Prime Market, decliners were led by machinery, iron and steel, and electric appliance issues.
The U.S. dollar fell to a one-month low in the lower 142 yen range in Tokyo after weaker-than-expected U.S. employment-related data fueled speculation about an aggressive interest rate cut by the Federal Reserve later this month.
The yen, seen as a safe-haven asset, was also sought as Japanese stocks widened losses in the afternoon, dealers said.
On the stock market, the Nikkei benchmark fluctuated between positive and negative territory in the morning, supported by bargain-hunting after the benchmark lost more than 2,000 points over the past three trading days.
But the index was weighed down by technology shares that tracked an overnight decline on a key U.S. semiconductor index, while exporters were hit by a stronger yen, which reduces their overseas profits when repatriated.
Investors were also cautious of the U.S. jobs data for August to be released by the U.S. government, as they gauged the health of the U.S. economy and whether it is on a path toward a recession, analysts said.
“There is a lot of tension ahead of the data…today may be the calm before the storm,” said Kazuo Kamitani, a strategist in the Investment Content Department of Nomura Securities Co.
Last month, weaker-than-expected U.S. employment data triggered fears of a possible recession and led to a tumble in global stocks, with the Nikkei index suffering its biggest single-day point drop in history.
If the results land greatly below market expectations, it is “likely to trigger a rapid slide of the dollar against the yen,” which can also lead to a selloff in stocks, Kamitani said.
The U.S. jobs data is expected to give a major clue on whether the U.S. Federal Reserve will cut interest rates by 0.25 or 0.50 percentage point at its next policy meeting later this month, analysts said.
Nikkei index extends losing streak to 4 days ahead of US jobs data
