By Kevin Buckland
TOKYO, April 7 (Reuters) - Japan's Nikkei share average
gained on Friday, trimming its weekly decline, as a weaker yen
and higher Wall Street close overnight boosted sentiment.
However, with crucial U.S. jobs data due later in the day,
and most major markets shut for Good Friday, investors were
loath to chase the market higher, and the equity benchmark ended
the morning session well back from early highs.
The Nikkei rose 0.15% to 27,512.81, after earlier
touching 27,591.15.
In the first week of Japan's new fiscal year, the index
reached a nearly one-month high of 28,287.42 on Tuesday, only to
then slide with global equities as a spate of weak U.S. economic
data fueled worries about a recession. It's on track for a 1.9%
weekly decline, its first losing week in three.
The broader Topix gained 0.33% to 1,967.69 on
Friday, but remained on track for a 1.8% loss for the week.
Fears that the Federal Reserve has overdone its tightening
campaign has magnified the importance of the monthly non-farm
payrolls report later in the day, although U.S. financial
markets will be shut for the holiday.
Provided the employment data doesn't prove game-changing,
however, Nomura Securities expects the Nikkei to move in a
narrow range next week, sandwiched between the 25- and 200-day
moving averages.
"The topside is heavy, but the bottom is firm," said Nomura
strategist Kazuo Kamitani.
Although the United States also has consumer price data next
week, Japanese stocks have become less sensitive to U.S.
inflation indicators, he said.
The safe-haven yen retreated overnight after reaching its
strongest level since March 28 earlier in the week, and traded
little changed on Friday at 131.67 per dollar .
That helped automakers in particular, with Mazda rising 1.5% and Subaru gaining 1.58%. Toyota added 0.33%.
Banking was the best performer among the Tokyo
Stock Exchange's 33 industry sectors, jumping 1.46%.
A standout loser though was Seven & i Holdings ,
operator of the 7-Eleven chain in Japan, which dropped 3.24%
after disappointing earnings results.
(Editing by Uttaresh Venkateshwaran)
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