TOKYO: Tokyo stocks closed lower on Friday, trailing losses on Wall Street as investors awaited the release of US employment data.

The benchmark Nikkei 225 index fell 1.59 percent, or 448.18 points, to end at 27,777.90, while the broader Topix index gave up 1.64 percent, or 32.48 points, to 1,953.98.

Overnight weakness in US banking and semiconductor shares weighed on the Tokyo market, which fell from the start, wiping out gains made on Thursday.

Mizuho Securities said that traders were “in a wait-and-see mode” ahead of US jobs data.

The dollar stood at 135.02 yen, against 135.34 yen seen Thursday in New York.

Global investors were still digesting Federal Reserve Chair Jerome Powell’s announcement that it was time to moderate the speed of his aggressive interest rate hikes to counter inflation.

They were also closely watching China’s zero-Covid policy, with signs that Beijing might be moving towards a more pragmatic approach.

“This should help alleviate some of the acute supply chain issues” with citizens no longer “discouraged from going out due to fears of being pinged and being sent to a quarantine facility”, Tapas Strickland of National Australia Bank said.

Tokyo stocks close lower ahead of US Fed chair address

Sports equipment maker Mizuno climbed 0.98 percent to 2,872 yen after Japan’s national football team at the World Cup beat Spain to advance to the knockout round.

Automakers were lower with Toyota falling 1.37 percent to 1,971 yen while Nissan tumbled 2.98 percent to 474.6 yen.

Uniqlo operator Fast Retailing dropped 1.71 percent to 81,360 yen.