TOKYO: Japan’s Nikkei share average fell on Thursday, weighed down by a stronger yen and losses in semiconductor-related stocks, while investors awaited US non-farm payroll data due on Friday to gauge the strength of the world’s largest economy.

The Nikkei was down 0.35% at 36,917.44 by the midday break after sliding more than 1% earlier in the session.

benchmark was on track for a third straight session of falls.

The broader Topix recouped early losses to end the morning session up 0.39% at 2,643.83.

“The labour data out so far this week has not really cooled concerns about the US economy, and there is a slight tilt towards expecting the Fed’s first rate cut to be of a larger magnitude,” making the dollar/yen prone to more slides, said Charu Chanana, global market strategist and head of FX strategy at Saxo.

“This could continue to take some of the speculator froth out of Japanese equities.”

The yen edged 0.26% higher to 143.56 per dollar during morning trade before easing, and has already gained nearly 2% for the week thus far.

US stocks closed mixed on Wednesday.

Shares of chip star Nvidia, which suffered a massive $279 billion drop in market value on Tuesday, closed 1.7% lower.

Japan’s Nikkei rises as tech shares gain

In Japan, shares of chip-related majors Tokyo Electron and Advantest slid 2.5% and 2.1%, respectively. Advantest counts Nvidia among its customers.

Renesas Electronics fell 3.6% to become the largest percentage loser on the Nikkei.

Among individual stocks, Nippon Steel recouped early losses to trade up 1.4%.

Sources told Reuters on Wednesday that US President Joe Biden was close to blocking Nippon Steel’s takeover of US Steel on national security risks.

Nikkei heavyweight Fast Retailing fell 3.1% to pull the index further down.