Shares in Tokyo ended lower on Friday, with the Nikkei index posting a four-day rally, as investor sentiment was shaken by renewed fears that the U.S. Federal Reserve would continue to aggressively raise interest rates.
The 225-number Nikkei Stock Average fell 195.19 points, or 0.71%, from Thursday to 27,116.11. The broader Topix index fell 15.67 points, or 0.82%, to 1,906.80.
In the leading core market, all industry categories declined except ground transportation and air transportation. The declines were led by machinery, insurance and shipping issues.
The US dollar remained firm around the psychologically important 145 yen line after several senior Fed officials reiterated the previous day that the US central bank would continue its aggressive interest rate hikes.
At 5 p.m., the dollar was worth 144.90-92 yen against 145.09-19 yen in New York and 144.57-60 yen in Tokyo at 5 p.m. Thursday.
The euro traded at $0.9798-9799 and 141.98-142.02 yen against $0.9788-9798 and $142.08-18 in New York and $0.9910-9912 and 143.28-32 yen in Tokyo late Thursday afternoon.
Japan’s 10-year government bond was not traded for the second day in a row as investors bottomed ahead of the release of U.S. jobs data later on Friday.
Japanese stocks traded in negative territory throughout the day after remarks from Fed officials dashed hopes that the central bank would ease its bullish stance on monetary tightening following Thursday’s release of higher weekly jobless claims. large than expected in the United States, brokers said.
But their falls were limited as investors took a wait-and-see attitude ahead of the upcoming release of U.S. jobs data for September for clues about the state of the world’s largest economy and the prospect of higher rates, said Shingo Ide, chief equity strategist at the NLI Research Institute.
“There’s a strong view that the uncertainties will persist for some time,” Ide said, citing difficulties predicting how the stock market will react even if the data turns out to be favorable for the labor market.
Many investors have also likely decided to close their positions before the long weekend in the United States and Japan amid heightened global tensions following North Korea’s ballistic missile launches this week and the recent annexation by Russia of four occupied Ukrainian regions, he said.
Shares were also pressured by semiconductor bond selling that followed overnight losses from their US counterparts, with sentiment also hurt by US chipmaker Advanced Micro Devices Inc. reporting on Thursday after-hours trading of preliminary third-quarter results that fell short of expectations.
Semiconductor equipment maker Tokyo Electron fell 310 yen, or 0.8%, to 38,830 yen, while chipmaker Renesas Electronics lost 9 yen, or 0.7%, to 1,308 yen. .
Among the market’s top issues, declines outnumbered advances by 1,254 to 500, while 82 ended unchanged.
Contrary to trend, anticipation of a recovery in Japan’s tourism industry has boosted transportation trouble buying as the government prepares to resume individual visa-free travel to the country and remove its cap of 50,000 daily arrivals from next Tuesday.
Japan Airlines rose 24 yen, or 0.9%, to 2,701 yen, while ANA Holdings, the parent company of All Nippon Airways, climbed 11.5 yen, or 0.4%, to 2 782.5 yen.
Trading volume on the main market fell to 1,111.96 million shares from 1,139.43 million on Thursday.