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Japan's Nikkei set for worst week since Dec 2022 as tech tumbles
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Japan's Nikkei set for worst week since Dec 2022 as tech tumbles
Apr 4, 2024 8:08 PM

TOKYO, April 5 (Reuters) - Japan's Nikkei share average

tumbled more than 2% to a three-week low on Friday, putting it

on course for its worst week since December 2022 as tech shares

slid on Wall Street's lead.

Investors were also cautious ahead of a key monthly U.S.

jobs report due later in the day, with the outlook for when the

Federal Reserve will cut interest rates becoming increasingly

unclear this week.

The Nikkei was down 2.42%, or 961 points, at

38,812.24, as of the midday recess, bringing its loss for the

week to 3.86%.

"The biggest factor for the Nikkei's decline is technical,"

said Kazuo Kamitani, an equities strategist at Nomura

Securities.

The benchmark index was poised for a second weekly loss,

after it rallied to an all-time high of 41,087.75 on March 22.

The 25-day moving average turned lower on Friday, and should

it remain that way, "there's the risk that the Nikkei is in for

another step down from here," he said.

"The 25-day moving average has a mysterious gravitational

pull, and is very much in focus for the market," Kamitani added.

"All of next week, stock market moves could be a bit volatile."

Chip sector shares were among the biggest drags on Friday,

with Tokyo Electron ( TOELF ) dropping nearly 5% to shave 192

points from the Nikkei. Advantest ( ADTTF ) erased another 78

points with a 4.7% decline.

Other notable losers included startup investor SoftBank

Group ( SFTBF ), which lost 3.35%, and Uniqlo chain operator Fast

Retailing ( FRCOF ), which skidded 2.5%.

Of the Nikkei's 225 components, 214 declined while only 11

advanced.

The broader Topix lost 1.81%, with a sub-index of

growth shares dropping 2.05%, compared with a 1.6%

slide for value stocks.

Energy shares provided the one bright spot among Nikkei

sectors, climbing 0.73% after crude oil closed above $90 for the

first time since last October.

Oil refiner Inpex ( IPXHF ) was the Nikkei's biggest

percentage gainer with a 1.3% jump.

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