(Bloomberg) -- Japanese shares dropped, with banks and electronics companies the biggest drags on the Topix, after the S&P 500 Index had its steepest slump in seven weeks.
Data from the ADP Research Institute Thursday showed that U.S. private payrolls rose by 158,000 in June, below the median economist estimate of 188,000. American non-farm payrolls data are scheduled for release later Friday. Shares of lenders fell with government bond yields after the Bank of Japan announced its first unlimited fixed-rate bond-purchase operation since February.
“With the ADP job numbers coming in below expectations, investors are concerned that tonight's non-farm payroll numbers will also be below expectations,” said Mitsushige Akino, a Tokyo-based executive officer at Ichiyoshi Asset Management Co. “With the situation in the U.S. uncertain, the shift from growth stocks to value stocks has been left half-baked, and the overall market is likely to fall.”
Domestic shares briefly pared losses after the yen slid on the BOJ's bond-purchase operation. The Topix trimmed its retreat to 0.1 percent at one point from as much as 0.7 percent as the yen reversed a three-day advance against the dollar. The central bank action pushed down government bond yields, further weighing on banks.
Summary
- Topix -0.5% to 1,607.06 at the close in Tokyo, down 0.3% for week, first decline in four weeks
- Nikkei 225 -0.3% to 19,929.09
- Yen -0.5% to 113.77 per dollar
- Canon -3.8%; GE, Canon risk fines as EU clamps down on merger violations
- Belc -8.8%, biggest decline since March 2011; 1Q operating profit drops 5% y/y to 2.2b yen
- Cosmos Pharmaceutical +1.2%; preliminary full-year operating profit 22b yen, beating company forecast by 19%
- Mani -8%, biggest drop since March 30, 2016; 9-month operating profit drops 2.7% y/y to 3.2b yen
- Nagase Brothers +6.7%; to buy back up to 2.96% of shares for 1.2b yen
- Seven & i Holdings -1.4%; 1Q operating profit 84.1b yen vs. analyst estimate of 86.2b yen
- Japan Airport -6.5%, falls most in a more than year; IATA reported growth of revenue passenger kilometers, a measure for global passenger demand, slowed to 7.7% in May, from 10.9% in April
--With assistance from Min Jeong Lee
To contact the reporters on this story: Yuko Takeo in Tokyo at ytakeo2@bloomberg.net, Nao Sano in Tokyo at nsano3@bloomberg.net.
To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Jonathan Annells, Vivek Shankar
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