TOKYO: Japan’s Nikkei share average inched lower on Friday, as investors were cautions ahead of the release of US payrolls data, while gains in chip-related stocks limited losses.

The Nikkei index was down 0.09% to 32,130.94 by the midday break, after falling below 32,000 for the first time since July 13 earlier in the session.

The index lost almost 4% in the past two sessions after a surprise cut on the US credit rating shook the market, and is set to lose 1.8% for the week.

“The declines driven by the US downgrade seems to have stopped so far, as a round of sell-offs by short-term investors ended,” said Takehiko Masuzawa, trading head at Phillip Securities Japan.

“But investors held off making active bets on stocks ahead of the release of US payrolls data.

If the outcome is strong, then yields rise, which would prompt investors to sell stocks.“

The broader Topix inched down 0.04% and is on course to lose 1% for the week.

Tokyo stocks tumble for second straight day

Shares of Nintendo slipped 3.27% to drag the Nikkei lower, even as the maker of Switch console’s first-quarter operating profit leapt 82% on a year earlier.

Medical equipment maker Terumo lost 1.51% and robot maker Fanuc was down 0.8%. Chip-making equipment maker Tokyo Electron rose 0.79%.

Chip-testing equipment maker Advantest rose 0.64%.

Of the 225 Nikkei components, 93 stocks rose, 131 fell and one was flat.