Nikkei declines, tracking Wall Street as US jobs data awaits

Japan’s Nikkei index fell sharply on Thursday after Wall Street fell overnight ahead of the release of key jobs data that would provide clues on how quickly the Federal Reserve (US central bank) might start cutting interest rates.

The Nikkei Nikkei fell 1.76 percent to 32,858.31 points at close, with 189 of the 225 stocks listed on it declining and 36 rising.

This erased most of the index’s recovery, which was recorded on Wednesday by more than 2 percent from the lowest level in three weeks.

Thursday’s decline returned the Nikkei index to the track of recording its worst weekly performance since mid-October, down 1.72 percent so far.

The broader Topix index fell 1.14 percent, heading for a 0.95 percent decline for this week, which may also be the worst performance since mid-October.

The energy sector recorded the largest losses among the sub-sectors on the Nikkei index after crude oil fell to its lowest level in six months.

Shares of chip-related companies also recorded notable declines, and two of them put significant pressure on the Nikkei index, among the three stocks that contributed most to its decline.

Shares of chip manufacturing equipment giant Tokyo Electron fell by 3.59 percent. Advantest, a maker of chip testing equipment, fell 4.69 percent. Fast Retailing, which operates Uniqlo stores, also fell by 2.06 percent.

The performance of car manufacturing companies’ shares was weak in light of the rise of the yen, which reduced the value of these companies’ foreign sales. Toyota shares fell 1.15 percent, Honda shares fell 2 percent, and Nissan shares fell 1.81 percent.