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Japan's Nikkei ends lower as yen strengthens; chip stocks limit losses
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Japan's Nikkei ends lower as yen strengthens; chip stocks limit losses

Updates to closing prices at 0600 GMT

- Japan's Nikkei share average ended lower on Friday after a stronger yen weighed on export-oriented stocks, while gains in chip-related stocks limited losses.

The Nikkei .N225 fell 0.68% to close at 36,581.76, after opening 0.13% higher. For the week, the index rose 1.2%.

The broader Topix .TOPX fell 0.82% to 2,571.14 and slipped 0.19% for the week.

"The stock market has been so closely linked with the currency market because investors are worried about the impact of the yen rising below 140 to the dollar on corporate earnings," said Kentaro Hayashi, a senior strategist at Daiwa Securities.

"But we expect domestic firms can boost their profits even as the yen rises to around 130. So the market might be too sensitive to the yen's move."

The yen JPY=EBS rose to its highest level since Dec. 28 of 140.645 per dollar ahead of week's central bank bonanza, where the focus is on the U.S. Federal Reserve and the size of its expected interest rate cut. FRX/

The Bank of Japan is expected to keep the rate unchanged at a policy meeting week but the market expects another rate hike by the end of this year.

Rubber makers .IRUBR.T fell 1.54% to become the worst performers among the Tokyo Stock Exchange's (TSE) 33 industry sub-indexes.

The automakers' index .ITEZPT.T fell 1.52%, with Toyota Motor 7203.T and Honda Motor 7267.T losing 2.31% and 1.44%, respectively.

Heavyweight Fast Retailing 9983.T, the owner of the Uniqlo brand, fell 1.39% to drag the Nikkei the most. Gym operator and entertainment company Konami Group 9766.T lost 3.8%.

Chip-related stocks rose, with Tokyo Electron 8035.T rising 1.72% and Advantest 6857.T up 1.3%.

Of more than 1,600 stocks trading on the TSE's prime market, 21% rose, 75% fell, while 3% traded flat.



(Reporting by Junko Fujita; Editing by Rashmi Aich)

((junko.fujita@thomsonreuters.com;))

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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