TOKYO: Japan’s Nikkei share average fell on Friday, as investors locked in profit following a four-session climb after US economic data raised bets of an interest rate reduction by the Federal Reserve next week.
The Nikkei was down 1.23% at 39,360.43 by the midday break, but has gained nearly 2% so far this week.
In the previous session, gains propelled the benchmark index to a two-month high. The broader Topix fell 1.26% to 2,738.05, but on course for a weekly gain of 1.68%.
“The overnight weak finish of overseas markets dragged sentiment lower, prompting investors to sell stocks for profit-booking,” said Takehiko Masuzawa, trading head at Phillip Securities Japan.
“The market wanted to adjust their positions ahead of the weekend,” he said. The Nikkei crossed the key 40,000 level for the first time since Oct. 15 in the previous session.
Wall Street pulled back overnight as investors evaluated key economic indicators ahead of the Federal Reserve meeting next week.
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A US Labor Department report on Thursday showed producer prices rose 0.4% on a monthly basis in November, compared with estimates of a 0.2% climb, as per economists polled by Reuters.
Shares of Uniqlo-brand clothing store operator Fast Retailing lost 2.61% to drag the Nikkei the most on Friday.
Chip-making equipment maker Tokyo Electron fell 2.64%, tracking US chipmakers’ 0.91% drop. Silicon wafer maker Shin-Etsu Chemical lost 2.55%.
Oji Holdings surged 10% to become the top percentage gainer on the Nikkei after the packaging maker announced a share buyback.
Heavy machinery maker IHI fell 4.56% to become the biggest percentage loser in the Nikkei. All but two of the Tokyo Stock Exchange’s (TSE) 33 industry sub-indexes fell.
The pulp and paper makers index rose 3.25% and the shippers climbed 0.35%.
Of 1,644 stocks in the TSE’s prime market, 21% advanced and 75% fell, while 3% traded flat.
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