TOKYO: Japan’s Nikkei share average fell on Friday after a stronger yen weighed on export-oriented stocks, while gains in chip-related stocks limited losses.

The Nikkei was down 0.89% at 36,507.1 by the midday break, after opening 0.13% higher. For the week, the index is set to rise 1.21%.

The broader Topix lost 0.84% to 2,570.71 and is poised to post a 0.19% weekly decline.

“The stock market has been so closely linked with the currency market because investors are worried about the impact of the yen rising below 140 to the dollar on corporate earnings,” said Kentaro Hayashi, a senior strategist at Daiwa Securities.

“But we expect domestic firms can boost their profits even as the yen rises to around 130. So the market might be too sensitive to the yen’s move.”

The yen rose against the dollar in early trade, hovering close to an 8-1/2-month high of 140.71 it touched on Wednesday. Rubber makers fell 1.93% to become the worst performers among the Tokyo Stock Exchange’s (TSE) 33 industry sub-indexes.

The automakers’ index fell 1.27%, with Toyota Motor and Honda Motor losing 1.75% and 1.27%, respectively. Entertainment company Konami Group fell 4% to become the biggest loser on the Nikkei.

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Heavyweight Fast Retailing, the owner of the Uniqlo brand, fell 1.12% to drag the Nikkei the most.

Chip-related stocks rose, with Advantest climbing 0.54% and Disco rising 1.14%.

Of more than 1,600 stocks trading on the TSE’s prime market, 22% rose, 73% fell, while 3% traded flat.