The stock market in Japan shed nearly 3% on Friday, as concerns about global economic recovery following sovereign debt concerns in Greece and weaker than expected jobless claims in the US resulted in sell-off in US and European markets in the previous session. Strengthening of the local currency against the dollar as traders preferred to shun risk also impacted market sentiment.
The benchmark Nikkei 225 Index closed at 10,057.09, down 298.89 points or 2.89%,. while the broader Topix index of all First Section issues lost 19.31 points, or 2.12%, to 892.
On the economic front, a preliminary report released by the Cabinet Office revealed that Japan's leading index strengthened for the tenth consecutive month in December at 94, higher than the reading of 91 reported for November. Analysts expected the index at 93.5 for the month. The report further revealed that as of January 31, foreign currency reserves amounted to $1.001 trillion, while reserves with the International Monetary Fund stood at $4.27 billion. Gold reserves totaled $26.53 billion, while SDRs were worth $20.79 billion.
Light sweet crude oil futures for March delivery ended at $73.35 a barrel in electronic trading, up $0.21 per barrel from previous close at $73.14 a barrel in New York on Thursday.
Sharp decline in US and European markets in the previous session following weaker than expected jobless claims in the US and sovereign debt concerns in Greece dragged the market sharply lower. The strengthening of the local currency, Japanese Yen, against the dollar as traders shunned risk aversion also impacted market sentiment.
Toyota Motor, which had been declining in the past few trading session amid concerns about recall of defective cars, was among the gainers, having added 1.22%. Other automakers ended in negative territory. Honda Motor fell 3.73%, Isuzu Motor lost 4.88%, Mazda Motor declined 4.90%, Mitsubishi Motor shed 3.15% and Nissan Motor backpedaled 3.93%.
Trading companies also ended in negative territory. Mitsubishi Corp. declined 3.29%, Mitsui & Co., plunged 4.58%, Sumitomo Corp. lost 4.05%, Toyota Tsusho Corp. fell 2.77% and Marubeni Corp. shed 3.63%.
Bank stocks also ended weaker. Resona Holdings plunged 5.51%, Sumitomo Mitsui Financial lost 2.06%, Mitsubishi UFJ Financial shed 1.30% and Mizuho Financial declined 1.71%.
Shipping stocks ended sharply lower amid concerns about economic recovery. Kawasaki Kisen Kaisha lost 2.95%, Mitsui OSK Lines plunged 4.42% and Nippon Yusen fell 2.43%.
Exporters ended weaker on stronger yen. Canon Inc. declined 3.53%, NEC Corp lost 2.86% and Sharp Corp., edged down 0.37%.
In the U.S., stocks recorded substantial losses on Thursday, as concerns over continued high levels of jobless claims and spreading European credit issues weighed on the markets. With the pullback, the major averages all finished firmly in negative territory, setting three-month closing lows ahead of tomorrow's landmark employment report. The Dow fell by 268.37 points or 2.6% to 10,002, the Nasdaq declined by 65.48 points or 3% to 2,125 and the S&P 500 slid by 34.17 points or 3.1% to 1,063.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.