Japan’s Nikkei slips from record closing high, market eyes US jobs data

TOKYO: Japan’s Nikkei share average fell on Wednesday from a record closing high in the last session, as investors booked profits, while market focus shifted to a key US jobs report that could determine the Federal Reserve’s interest rate path.

The Nikkei was down 0.4% at 52,284.23, as of 0152 GMT, while the broader Topix slipped 0.49% to 3,521.12.

The Nikkei rose 4% in the first two sessions of the year, notching a record closing high on Tuesday.

“In the past two sessions, it looked as if the money that was concentrated in the US artificial intelligence-related shares was diversified to other countries, as equities were strong globally,” said Hitoshi Asaoka, chief strategist at Asset Management One.

“But today’s declines are marginal given the sharp gains until the previous session. The market’s focus is now on the US jobs data due this week.”

Investors are looking forward to reliable US economic data as the effects of a record 43-day federal government shutdown wear off, and upcoming releases include the Job Openings and Labor Turnover Survey on Wednesday and Friday’s jobs report for December.

Weaker-than-expected employment data could strengthen the case for central bank interest rate cuts.

In Japan, Uniqlo brand owner Fast Retailing fell 2.04% to drag down the index the most.

Chip-testing equipment maker Advantest fell 1.67%. Chip-making equipment maker Tokyo Electron rose 2.54% to provide the biggest support to the Nikkei.

Memory chip maker Kioxia surged 12.7%.

Hisamitsu Pharmaceutical was untraded on a glut of buy orders after the company said it was planning to take the company private in a management buyout for nearly 400 billion yen ($2.55 billion).

Its shares were last bid at an exchange-imposed daily limit high of 6,200 yen.