TOKYO: Tokyo shares have given up early gains and fallen into negative territory, amid fresh hopes for further easing in Europe.
The Nikkei-225 index at the Tokyo Stock Exchange had dropped 0.63 per cent or 114.65 points to 18,067.74 by mid-morning, after opening higher on Friday.
The Topix index of all first section shares also dropped 0.69 per cent or 10.22 points to 1,464.76.
Investors remained cautious ahead of the US payrolls report, slated for release later Friday, and whether it will make or break the case for an interest rate hike this month.
The yen’s gain also weighed on the sentiment, as the Japanese currency stood at Y119.89 to the US dollar, compared with Y120.01 in New York on Thursday.
“Investors are waiting to see the US jobs report,” Juichi Wako, a senior strategist at Nomura Holdings said.
Jasper Lawler, a markets analyst at CMC Markets, said: “A weaker jobs number on Friday may be the straw that breaks the camel’s back for a September rate hike.”
The market opened higher after the European Central Bank announced it may expand its stimulus measures to battle deflation.
ECB head Mario Draghi said that the bank’s quantitative easing asset purchase program “provides sufficient flexibility in terms of adjusting the size, composition and duration” if the region’s economy remains weak.
The comment lifted international markets, and drove down the euro against the US dollar.
