TOKYO: Tokyo stocks fell to their lowest level in nearly seven months on Friday as market participants reduced stockholdings ahead of important US jobs data.
The Nikkei Stock Average fell 390.23 points, or 2.2 per cent, to 17,792.16, the lowest level since February 10. The Nikkei index fell 7 per cent this week, the biggest weekly drop since April 2014.
Japanese stocks opened higher, helped by European Central Bank President Mario Draghi’s indications of additional easing, but soon turned negative as caution prevailed over the global economic outlook. While concerns persist about the state of the Chinese economy, money-managers are focusing on the strength of the US recovery with non-farm payrolls data to be released later Friday.
Stocks closely linked to global growth fell. Manufacturing sensor and vision maker Keyence Corp. slid 5.7 per cent to Y51,970. Electronics parts maker Murata Manufacturing Co lost 3.3 per cent to Y15,980.
Global markets have fluctuated in recent weeks due to concerns about China’s economic slowdown and the integrity of its capital markets. Chinese markets are closed Friday for a public holiday.
Foreign investors last week sold a net Y1.47 trillion ($US12 billion) of Japanese stocks and futures contracts for the Nikkei and Topix, the biggest combined net selling since 2007, according to Japan Exchange Group data released Thursday. The selling was driven by futures trading.
