Tokyo Investors to Take Cues from U.S. Jobs Report
Japan's market direction next week will depend heavily on what comes out of the closely watched U.S. jobs report to be released later Friday, dealers said.
Traders were sitting tight before the release of the non-farm jobs reading that is expected to inform the outlook for the U.S. Federal Reserve's interest rate policy.
The Fed is considering raising near-zero interest rates this year even though this may slow the U.S. recovery.
But a string of weak economic data has muddied the outlook for an increase in rates, which have been pegged at the zero level for more than six years.
"Many investors are opting to wait on the sidelines ahead of the U.S. jobs report," Tomomi Yamashita, an analyst at Tokyo's Shinkin Asset Management, told Bloomberg News.
Juichi Wako, a senior strategist at Nomura Holdings Inc. in Tokyo, also told Bloomberg News: "There are few reasons for stocks to move solely based on domestic reasons."
The U.S. Labour Department is projected to say Friday the American economy added 245,000 non-farm jobs last month, down from February's 295,000, according to a Bloomberg survey.
Tokyo stocks gained Friday after a positive lead from Wall Street, where the Dow added 0.37 percent Thursday ahead of a three-day holiday weekend in the U.S.
On Friday, the Nikkei 225 index at the Tokyo Stock Exchange added 0.63 percent, or 122.29 points, to end at 19,435.08. It gained 0.77 percent over the week.
The broader Topix index of all first-section shares rose 0.64 percent, or 9.99 points, to 1,564.16. It added 0.73 percent this week.
The dollar edged down to 119.67 yen Friday afternoon from 119.77 yen in New York late Thursday.
The euro changed hands at $1.0883 and 130.22 yen against $1.0879 and 130.30 yen in New York.
In Tokyo, Toyota rose 0.58 percent to 8,426.0 yen following news reports that the Japanese auto giant plans to invest a combined $1.3 billion to build new plants in China and Mexico.
Sony jumped 3.41 percent to 3,450.0 yen, while Sharp ended flat at 231.0.
Heavyweight firm Fast Retailing, operator of the Uniqlo clothing chain, rose 1.05 percent to 47,610.0 yen.
Source: Agence France Presse
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