Tokyo shares are likely to be pressured next week ahead of Japan's widely expected weak second-quarter GDP figures and US economic data, as worries mount that recovery in advanced nations is stalling. In the week to August 13, the Tokyo Stock Exchange's Nikkei index lost 4.03 percent, or 388.66 points to reach 9,253.46. The broader Topix index of first-section shares fell 3.48 percent, or 29.93 points, to 831.24.
Positive corporate earnings results failed to lift the Nikkei, which tumbled to a 13-month low this week on the back of a strong yen and a cloudy outlook for the US economy, Nomura Securities researchers wrote in a note Friday.
The yen rose to a 15-month high of 84.73-yen to the dollar on Wednesday, hammering exporters and prompting a verbal intervention from the Japanese government the day after.
The yen was trading at 86.04-yen to the dollar in afternoon trade Friday.
Amid fears that the US economic recovery is stalling, speculators have parked their assets in the safe-haven yen because it is unlikely that Japan, which has a large current account surplus, will face a run on its currency.
"In our outlook for share earnings, we need to keep a vigilant eye on foreign exchange movements," the Nomura analysts warned.
Economists expect that Japan's GDP, out on Monday, inched up between 0.6 percent and 2.3 percent in the April-June period, compared with a whopping five percent rise in the previous quarter.
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