Japanese equity-linked securities traded in the United States pointed to waning interest in Japanese exposure on Friday after record foreign buying helped drive Tokyo shares to their best week in five months. Nikkei index futures traded in Chicago, a popular Japanese exchange-traded fund that tracks underlying Japanese shares, and American Depository Receipts (ADR) of leading Japanese companies all fell in US trading.
Nick Kalivas, an analyst at MF Global in Chicago said some investors were concerned that more progress had not been made in overcoming production halts and containing radiation two weeks after Japan suffered a devastating earthquake, tsunami and nuclear crisis.
"People generally had the idea that coming into the second half of this week we would be through it and we're not," said Nick Kalivas, an analyst at MF Global in Chicago.
Nikkei futures fell 0.9 percent, the iShares MSCI Japan Index exchange-traded fund lost 1.8 percent to $10.39, while the Bank of New York Mellon index of leading Japanese shares fell 1.4 percent.
The Nikkei average rounded off a week of gains as foreign investors scooped up battered shares, but buying could ebb next week on persistent concerns about the Fukushima nuclear plant and power cuts.
The Nikkei is down 12 percent from a pre-crisis high after having fallen as much as 20 percent.
Japanese shares that were among the heaviest decliners in New York included Canon Inc down 4 percent to $43.48, and Honda Motor Co down 3 percent to $36.88. Both companies are experiencing production interruptions.
In the wider market, the BNY Mellon index of leading American Depository Receipts (ADRs) fell 0.4 percent while the US benchmark S&P 500 index rose 0.5 percent.