Japan's Nikkei retreats from 5-month peak ahead of key U.S. data



TOKYO, June 10 (Reuters) - Japan's Nikkei share average on Friday was set for its first session of loss in six, tracking an overnight plunge in Wall Street as investors braced for crucial U.S. inflation data that will guide the Federal Reserve's policy tightening path.

The Nikkei .N225 was down 1.41% at 27,848.79 by the midday break, slipping below the psychological mark of 28,000 and retreating from a nearly five-month peak scaled on Thursday at 28,389.75.

The broader Topix .TOPX lost 0.98% to 1,949.84, on track for its steepest drop in three weeks.

Overnight, the tech-heavy Nasdaq .NDX slumped 2.74% and the S&P 500 eased 2.38%, a day before the release of the U.S. consumer price index. The market is braced for a strong reading for May, which would back the case for aggressive Federal Reserve policy tightening, even at the risk of choking economic growth.

"Investors are worried that the CPI will send U.S. stocks lower," with Japanese investors then not being able to react until the Monday reopen in Tokyo, said a market participant at a domestic securities company.

"It's a day when nerves are going to be elevated," added another market participant from a Japanese securities firm.

Growth shares including technology firms lagged, with the Topix's growth index .TOPXG sliding 1.33%, versus a 0.66% drop for the value index .TOPXV .

Chip-making equipment maker Advantest 6857.T slumped 3.73%, and bigger rival Tokyo Electron 8035.T dropped 2.76%.

Heavyweights including Uniqlo store operator Fast Retailing 9983.T and tech investor SoftBank Group 9984.T lost ground, down 1.95% and 2.56%, respectively.

Energy shares were the Nikkei's worst performing sector, sliding 1.8% amid a retreat in crude oil prices.

The real estate sub-index was the only sector in black, up 0.41%.

Of Nikkei's 225 component stocks, 173 fell versus 50 that rose while two were flat.


Reporting by Tokyo markets team; Editing by Sherry Jacob-Phillips

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.