TOKYO, May 30 (Reuters) - Japan's Nikkei share price
average fell on Friday, weighed down by uncertainty surrounding
a court battle about U.S. President Donald Trump's tariffs as
well as a stronger yen which hurt exporters.
At 0134 GMT, the Nikkei index was down 1.4% at
37,880.58. It ended the previous trading session at its highest
point in over two weeks and is on course for a 1.9% weekly gain.
The broader Topix fell 0.85% to 2,788.17 and is set
for a rise of 1.9% for the week.
"Japanese shares rose yesterday on expectations that the
impact of Trump's tariffs on the global economy would be eased,
but that positive mood was erased overnight," said market
analyst Shuutarou Yasuda at Tokai Tokyo Intelligence Laboratory.
A federal appeals court temporarily reinstated the most
sweeping of Trump's tariffs on Thursday, a day after a trade
court ruled that the president had exceeded his authority in
imposing the duties and ordered an immediate block on them.
The U.S. dollar fell following the news, pushing the yen as
high as 143.45 on Friday.
Strong inflation data on Friday for Japan's capital also
helped the yen to strengthen, strategists said.
Automakers fell, with Toyota Motor ( TM ) and Honda Motor ( HMC )
slipping 1.87% and 2% respectively.
A stronger yen typically weighs on exporter shares by
reducing the value of overseas earnings when converted back into
Japanese currency.
Chip-related shares fell, with Advantest ( ADTTF ) and Tokyo
Electron ( TOELF ) down 3.7% and 3.5% respectively.
Uniqlo-brand owner and index heavyweight Fast Retailing ( FRCOF )
fell 2.35% to drag on the Nikkei the most.
Bucking the trend, drugmakers rose, with Otsuka and
Eisai ( ESALF ) rising 2.59% and 2.77% respectively to offer the
biggest support for the Nikkei.
Of more than 1,600 stocks trading on the Tokyo Stock
Exchange's prime market, 38% rose, 56% fell and 5% were flat.