TOKYO (Kyodo) — Tokyo stocks ended mixed Friday, as buying of exporter shares on a weaker yen was offset by a tumble of market heavyweight Fast Retailing on concern about lower profitability at its domestic Uniqlo operations.
The 225-issue Nikkei Stock Average ended down 76.68 points, or 0.19 percent, from Thursday at 39,569.68. The broader Topix index finished 10.90 points, or 0.39 percent, higher at 2,823.24.
On the top-tier Prime Market, gainers were led by marine transportation, and pulp and paper issues, while electric power and gas, and nonferrous metal shares were the main decliners.
The U.S. dollar briefly strengthened to the lower 147 yen range in Tokyo, as speculation about Federal Reserve interest rate cuts receded due to possible higher inflation after President Donald Trump said he will impose a 35 percent tariff on imports from Canada on Aug. 1, dealers said.
At 5 p.m., the dollar fetched 146.85-87 yen compared with 146.18-28 yen in New York and 146.26-28 yen in Tokyo at 5 p.m. Thursday.
The euro was quoted at $1.1689-1691 and 171.66-70 yen against $1.1696-1706 and 170.95-171.05 yen in New York and $1.1733-1734 and 171.61-65 yen in Tokyo late Thursday afternoon.
The yield on the benchmark 10-year Japanese government bond ended at 1.500 percent, up 0.010 percentage point from Thursday’s close, as the debt was sold following a rise in U.S. Treasury yields.
Stocks were supported by export-oriented auto issues on a weaker yen, while heavyweight chip shares tracked gains by their U.S. counterparts following the release of lower-than-expected U.S. weekly jobless claims.
However, the benchmark Nikkei was dragged down by the sell-off of Fast Retailing after the Uniqlo clothing chain operator released earnings the previous day.
Fast Retailing plunged 6.9 percent to 43,500 yen after reporting that the gross profit margin of its Japanese Uniqlo business from March to May dropped from a year earlier, although its net profit for the nine-month period through May increased 8.4 percent.
“As a decline in profit margin becomes a very negative factor in corporate earnings, investors reacted nervously,” said Masahiro Yamaguchi, head of investment research at SMBC Trust Bank.