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Japan's Nikkei edges down ahead of key US data, central bank meetings
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Japan's Nikkei edges down ahead of key US data, central bank meetings
Jun 6, 2024 9:08 PM

TOKYO, June 7 (Reuters) - Japan's Nikkei share average

edged lower on Friday, dragged down by technology stocks, as

investors sought further direction from a key U.S. jobs report

due later in the day and central bank meetings in the United

States and Japan next week.

The Nikkei had eased 0.11% to 38,661.04 by the

midday break, but was up 0.45% for the week.

The broader Topix inched down 0.04% to 2,756.02 and

was set to post a 0.6% loss for the week.

"It was hard for investors to actively buy stocks ahead of

key data and events," said Jun Morita, general manager of the

research department at Chibagin Asset Management.

"Particularly, the market was cautious about what sort of

message the Bank of Japan (BOJ) would send when the global

central banks are on track for rate cuts."

The U.S. non-farm payrolls report due at 1230 GMT is

expected to provide clues on the timing of Federal Reserve

interest rate cuts.

Overnight, the European Central Bank (ECB) cut interest

rates for the first time in nearly five years. The Bank of

Canada pipped the ECB to become the first G7 country to cut

rates in this cycle on Wednesday.

Among individual stocks in Tokyo, Shionogi ( SGIOF ) tanked

14% after the company said its weight-loss drug failed to

achieve the weight-loss target rate of 5% in a test.

Chip-related stocks Tokyo Electron ( TOELF ) and Advantest ( ADTTF )

fell 0.78% and 2.29%, respectively. Technology investor

SoftBank Group slipped 0.48%.

The brokerage sector fell 1% to become the worst

performer among the Tokyo Stock Exchange's 33 industry

sub-indexes. The drug sector lost 0.91%.

Lasertec ( LSRCF ) jumped 6.29%. It had earlier declined 9%

for the week amid an allegation of improper accounting practices

raised by Scorpion Capital, which the microchip equipment maker

denied.

Of the 225 stocks on the Nikkei index, 125 rose and 97 fell

with three flat.

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