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Nikkei index snaps 4-day win streak on caution before US jobs data
MAINICHI
| Desember 6, 2024
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TOKYO (Kyodo) -- The Nikkei stock index snapped a four-day winning streak Friday on selling fueled by caution before U.S. jobs data, which is expected to offer clues on the direction of the Federal Reserve's monetary policy.
The 225-issue Nikkei Stock Average ended down 304.43 points, or 0.77 percent, from Thursday at 39,091.17. The broader Topix index finished 15.02 points, or 0.55 percent, lower at 2,727.22.
On the top-tier Prime Market, decliners were led by nonferrous metal, insurance and electric appliance issues.
The U.S. dollar was directionless around the 150 yen line in Tokyo as traders adopted a wait-and-see stance before monetary policy decisions by the U.S. and Japanese central banks later this month, dealers said.
At 5 p.m., the dollar fetched 150.09-11 yen compared with 150.01-11 yen in New York and 149.77-79 yen in Tokyo at 5 p.m. Thursday.
The euro was quoted at $1.0583-0584 and 158.85-89 yen against $1.0583-0593 and 158.86-96 yen in New York and 1.0534-0536 and 157.77-81 yen in Tokyo late Thursday afternoon.
The yield on the benchmark 10-year Japanese government bond ended at 1.050 percent, down 0.015 percentage point from Thursday's close. The debt was bought on expectations that the Bank of Japan could forgo raising interest rates later this month.
Stocks declined, led by semiconductor-related issues tracking their U.S. counterparts, while the market was also weighed down by profit-taking after the Nikkei climbed nearly 1,200 points over the past four days.
Caution also prevailed before the November U.S. nonfarm payrolls due out on Friday, with investors looking for hints on the Fed's interest rate cut path, as the previous data is seen to have been affected by strikes and hurricanes, analysts said.
"Investors wanted to cash in on recent gains, as the coming data is seen as very important considering the two previous reports were not perceived as credible," said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.
The outcome is likely to have an impact on the Japanese market, as a weak report is expected to increase prospects of a rate cut by the Fed and lead to a stronger yen, he said. A firmer yen reduces exporters' profits when repatriated.
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