TOKYO: Japan’s Nikkei share average rose on Friday, trimming its weekly decline, as a weaker yen and higher Wall Street close overnight boosted sentiment.
However, with crucial US jobs data due later in the day and most major markets shut for Good Friday, investors were loath to chase the market higher The Nikkei ended the day up 0.17% at 27,518.31.
However that was well off the early high of 27,591.15, and the index even briefly dipped into the red after the midday break.
Japan’s equity benchmark lost 1.9% over the course of the first week of Japan’s new fiscal year.
It reached a nearly one-month high of 28,287.42 on Tuesday only to then slide with global equities as a spate of weak US economic data fueled worries about a recession.
The broader Topix gained 0.21% to 1,965.44 on Friday, trimming its weekly loss to 1.9%.
Fears that the Federal Reserve has overdone its tightening campaign has magnified the importance of the monthly non-farm payrolls report later in the day, although US financial markets will be shut for the holiday.
Provided the employment data doesn’t prove game-changing, however, Nomura Securities expects the Nikkei to move in a narrow range next week, sandwiched between the 25- and 200-day moving averages.
“The topside is heavy, but the bottom is firm,” said Nomura strategist Kazuo Kamitani.
Although the United States also has consumer price data next week, Japanese stocks have become less sensitive to US inflation indicators, he said.
Tokyo stocks end higher after US rallies
The safe-haven yen retreated overnight after reaching its strongest level since March 28 earlier in the week, and traded little changed on Friday at 131.805 per dollar.
That helped automakers in particular, with Mazda rising 1.95% and Subaru gaining 1.33%.
Toyota, however, slipped to a 0.38% decline after unveiling its updated electric vehicle strategy.
Seven & i Holdings, operator of the 7-Eleven chain in Japan, was the biggest decliner, dropping 4% after earnings results disappointed.
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