TOKYO, June 4 (Xinhua) -- Japan's benchmark Nikkei stock index closed lower Friday as technology shares followed their U.S. peers lower overnight on inflation concerns amid a wait-and-see mood ahead of key U.S. jobs data due out later in the day.

The 225-issue Nikkei Stock Average dropped 116.59 points, or 0.40 percent, from Thursday to close the day at 28,941.52.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, edged up 0.49 point, or 0.03 percent, at 1,959.19.

Traders here said that technology issues weighed on the market as upbeat U.S. weekly unemployment and private payrolls data for May raised the prospects of increased inflation.

They added, however, that some investors also hit the sidelines to await key monthly U.S. jobs data due out later in the day for clues as to whether the U.S. Federal Reserve will begin to taper its stimulus measures.

Despite positive indicators, however, market strategists pointed to April's dire monthly jobs figures, intimating that nothing has been set in stone.

"Strong private payroll numbers have suggested positive jobs data," Makoto Sengoku, senior equity market analyst at the Tokai Tokyo Research Institute, was quoted as saying.

"I think today's jobs report will be a litmus test for whether the Fed will head for tapering its stimulus, and a stronger-than-expected result could make Fed officials start debating tapering as soon as this month's policy meeting, which is likely to further weigh on stock markets," he added.

Despite the downside pressure, analysts here said that losses were trimmed by issues sensitive to domestic demand getting a lift from investors' belief that Japan's slow vaccination rollout will actually be expedited ahead of the Tokyo Olympics.

"Japan's slow vaccination had been a reason to sell stocks. But now, about one in 10 people have got at least one shot, which is much better than just 1 percent about a month ago," Takashi Hiroki, chief strategist at Monex Securities, was quoted as saying.

By the close of play, issues that fell outpaced those that rose by 1,052 to 1,037 on the First Section, while 104 ended the day unchanged, and service, information and communication, and real estate issues comprised those that declined the most.

Among technology issues dragged down by their U.S. counterparts, Nidec lost 1.1 percent, while Tokyo Electron fell 1.6 percent.

Nikkei heavyweight Softbank Group weighed on the market, ending the day 1.3 percent lower.

But railway operators continued to gain traction on hopes Japan's vaccination push will lead to increased demand and a quicker economic recovery.

West Japan Railway advanced 1.0 percent, while Central Japan Railway added 0.9 percent.

Toyota Motor was a notable winner, accelerating 1.6 percent to a record high, as global demand for automobiles remains solid and heavily-traded Lasertec, on a winning streak for 10 days, ended 0.9 percent higher.

On the main section on Friday, 1,056.82 million shares changed hands, dropping from Thursday's volume of 1,091.98 million shares.

The turnover on the final trading day of the week came to 2,367.86 billion yen (21.50 billion U.S. dollars). Enditem

Related

Go to Forum >>0 Comment(s)