Sep 5, 2024 at 7:06 am GMT
Updates levels as of 0600 GMT
By Brigid Riley
TOKYO (Reuters) -Japan's Nikkei share average fell in choppy trade on Thursday, weighed down by a stronger yen and losses in semiconductor-related stocks, while investors await U.S. non-farm payroll data to gauge the strength of the world's largest economy.
The Nikkei .N225 closed at its lowest level since Aug. 14, dropping 1% to 36,657.09, its third consecutive session of losses.
The broader Topix . TOPX erased early gains to end 0.5% lower at 2,620.76.
The yen touched a one-month high of 143.20 earlier in the session, and has strengthened 1.8% so far this week.FRX/
A stronger local currency tends to hurt exporter shares as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.
"The labour data out so far this week has not really cooled concerns about the U.S. 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.
Coupled with expectations for more rate hikes from the Bank of Japan, these currency dynamics "could continue to take some of the speculator froth out of Japanese equities."
Investors will focus attention on a reading on the U.S. services industry and jobless claims data due later in the day, but the week's key concern will be Friday's hotly anticipated August report for nonfarm payrolls.
Among exporters, automaker Toyota Motor 7203.T slumped 2.2% and tech and entertainment conglomerate Sony Group 6758.T was down 1.5%.
Chip-related stocks extended losses in the afternoon session, tracking a slump in AI chip firm Nvidia NVDA .O and other U.S. technology shares on Wednesday. .N
Japan's Tokyo Electron 8035.T and Advantest 6857.T down 2.5% and 2.9%, respectively. Advantest counts Nvidia among its customers.
Among individual stocks, Nippon Steel 5401.T reversed from morning gains to end 0.4% lower. Sources told Reuters on Wednesday that U.S. President Joe Biden was close to blocking Nippon Steel's takeover of U.S. Steel X.N. on national security risks.
Nikkei heavyweight Fast Retailing 9983.T fell 3.8% to inflict the biggest single blow to the index.
Reporting by Brigid Riley; Editing by Subhranshu Sahu and Sherry Jacob-Phillips
Sumber : Reuters
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