Tokyo rally fizzles ahead of US jobs report

Tokyo rally fizzles ahead of US jobs report
Updated on

Summary The Nikkei 225 index at the Tokyo Stock Exchange ticked up 2.71 points to 17,725.13.

TOKYO (AFP) - Tokyo s benchmark index ended flat on Friday, pausing after a two-day rally, as investors kept to the sidelines ahead of a closely watched US jobs report.

The Nikkei 225 index at the Tokyo Stock Exchange ticked up 2.71 points to 17,725.13.

The broader Topix index of all first-section shares edged up 0.15 percent, or 2.18 points, to 1,444.92.

Investors were awaiting US unemployment figures for September to be released later in the day as they look for fresh cues on US monetary policy.

Traders see an improving labour market as a key factor supporting the Federal Reserve s plan to hike near-zero interest rates.

"If the jobs number is strong, then an interest rate hike will look more likely, and if it s too weak, the market will think the US economy is weak," Soichiro Monji, chief strategist at Daiwa SB Investments, told Bloomberg News.

"Both good and bad numbers will negatively impact stocks. The best situation for the market would be to see no impact."

Spending among Japanese households rebounded in August, according to data published Friday.

The upbeat figures were a rare bright spot in an otherwise gloomy string of trade, factory output and business confidence data that point to a contraction in the third quarter. Japan s July-September GDP figures are due next month.

In Tokyo share trading, automaker Nissan advanced 1.52 percent to 1,167.5 yen on a solid monthly US sales report, beating market forecasts.

Supermarket giant Aeon climbed 2.11 percent to 1,959 yen, while telecom firm SoftBank fell 0.07 percent to 5,625 yen, recovering from a drop of more than one percent by the lunch break.

Japan Tobacco rose 0.55 percent to 3,593 yen, after the stock took a hammering in recent days as investors dismissed its $5.0 billion purchase of a US-cigarette brand as too pricey.

On currency markets, the dollar edged up to 120.06 yen from 119.93 yen Thursday in New York. 

Browse Topics