Japan’s Nikkei Stock Average Falls on Caution Ahead of US Jobs Data (Update 1)

Reuters

12:35 JST, September 6, 2024 (updated at 15:30 JST)

TOKYO, Sept 6 (Reuters) – Japan’s Nikkei share average fell on Friday for a fourth straight session ahead of the release of the key U.S. non-farm payrolls, while a stronger yen weighed on sentiment.

The Nikkei closed 0.72% lower at 36,391.47 points, after falling as much as 1.7%.

For the week, the index lost 5.15%, its worst week since July 26.

“Investors wanted to reduce risks as they braced for a weak outcome of the U.S. jobs data, which prompted a sell-off of stocks,” said Shingo Ide, chief equity strategist at NLI Research Institute.

The yen rose to a one-month high ahead of the key U.S. jobs data due later in the day that could decide the size and speed of coming rate cuts in the world’s largest economy.

A firmer yen hurts exporters as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.

Chip-making equipment maker Tokyo Electron fell 1.9% to drag the Nikkei the most. Chip-testing equipment maker Advantest lost 1.38% and technology investor SoftBank Group lost 1.76%.

Seven & i Holdings fell 1.43%, after the retail giant said it had rejected Canada’s Alimentation Couche-Tard’s $38.5 billion cash bid for the company because the proposal was not in the interest of shareholders.

The broader Topix fell 0.89% to 2,597.42, dragged lower by electronic appliance maker Hitachi, which lost 3.57%. Sony Group fell 2.55%.

The index lost 3.4% for the week.

Of the more than 1,600 shares on the Tokyo Stock Exchange’s prime market, 26% of stocks rose and 70% fell, with 2% trading flat.