Tokyo's benchmark Nikkei index dropped more than one percent on Friday, tracking falls on Wall Street as weak US retail sales disappointed investors and a higher yen weighed on the market. The benchmark Nikkei 225 index lost 1.13 percent, or 239.08 points, to close at 20,900.63. Over the week, however, it gained 2.79 percent.
The broader Topix index slipped 0.79 percent, or 12.52 points, to 1,577.29. Over the week, it rose 2.46 percent. "Japanese shares are being weighed down by falls in US shares and the yen's appreciation" against the dollar, Toshiyuki Kanayama, senior market analyst at Monex, said in a note. The dollar fetched 110.34 yen in Asian afternoon trade, down from 110.69 yen in New York on Thursday.
US stocks were mostly negative after the Commerce Department reported retail sales had dropped 1.2 percent in December from the previous month, marking the largest month-to-month decrease since September 2009. "The retail sales decline was a big surprise," Toshikazu Horiuchi, a broker at IwaiCosmo Securities, told AFP. "It's hard to buy shares actively as players are facing uncertain factors, including the fate of the US-China trade negotiations," Horiuchi told AFP.
Top US economic officials were to meet with Chinese President Xi Jinping later Friday after wrapping up trade talks in Beijing without announcing any progress.
Some investors in the Japanese market were also profit-taking after the Nikkei 225 touched the 21,000 level, analysts said.
Market heavyweight SoftBank Group plunged 4.39 percent to 10,330 yen, while Fast Retailing, operator of the Uniqlo casual wear brand, was down 1.31 percent at 48,720 yen.
Nissan fell 0.95 percent to 935 yen as new Renault boss Jean-Dominique Senard held talks with Nissan officials in Japan. Former Nissan chief Carlos Ghosn on Wednesday shook up his legal team as he vowed to vigorously defend himself against financial misconduct charges. Other carmakers were also lower, with Toyota down 0.19 percent at 6,605 yen and rival Honda off 2.25 percent at 2,972.5 yen.
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