TOKYO: Tokyo stocks fell 1.17 percent Friday as a stronger yen took the air out of the market after another round of discouraging US data, with investors now gearing up for the Japanese earnings season.
The Nikkei 225 index at the Tokyo Stock Exchange dropped 232.89 points to close at 19,652.88, while the broader Topic index of all first-section shares was down 0.67 percent, or 10.73 points, to 1,588.69.
Tokyo’s slide followed a limp session on Wall Street with the dollar taking a hit as new figures disappointed, narrowing the likelihood of a Federal Reserve interest rate hike in early summer.
Government data showed Thursday that US housing starts rose less than expected in March, while initial jobless claims, a sign of the pace of layoffs, increased well above estimates to their highest level in six weeks.
News Wednesday that the Chinese economy grew at its slowest quarterly pace in six years has rekindled concerns about future growth — China is a major market for Japanese goods — while investors were also nervously watching the slow progress in Greece’s bailout talks.
In forex markets the dollar slipped to 118.93 yen, against 119.04 yen in New York and 119.33 yen in Tokyo earlier Thursday.
A stronger yen is negative for Japanese exporters as it makes them less competitive abroad and erodes profits when repatriated.
