TOKYO, April 5 (Reuters) - Japan's Nikkei share average
tumbled more than 2% to a three-week low on Friday, putting it
on course for its worst week since December 2022 as tech shares
slid on Wall Street's lead.
Investors were also cautious ahead of a key monthly U.S.
jobs report due later in the day, with the outlook for when the
Federal Reserve will cut interest rates becoming increasingly
unclear this week.
The Nikkei was down 2.42%, or 961 points, at
38,812.24, as of the midday recess, bringing its loss for the
week to 3.86%.
"The biggest factor for the Nikkei's decline is technical,"
said Kazuo Kamitani, an equities strategist at Nomura
Securities.
The benchmark index was poised for a second weekly loss,
after it rallied to an all-time high of 41,087.75 on March 22.
The 25-day moving average turned lower on Friday, and should
it remain that way, "there's the risk that the Nikkei is in for
another step down from here," he said.
"The 25-day moving average has a mysterious gravitational
pull, and is very much in focus for the market," Kamitani added.
"All of next week, stock market moves could be a bit volatile."
Chip sector shares were among the biggest drags on Friday,
with Tokyo Electron ( TOELF ) dropping nearly 5% to shave 192
points from the Nikkei. Advantest ( ADTTF ) erased another 78
points with a 4.7% decline.
Other notable losers included startup investor SoftBank
Group ( SFTBF ), which lost 3.35%, and Uniqlo chain operator Fast
Retailing ( FRCOF ), which skidded 2.5%.
Of the Nikkei's 225 components, 214 declined while only 11
advanced.
The broader Topix lost 1.81%, with a sub-index of
growth shares dropping 2.05%, compared with a 1.6%
slide for value stocks.
Energy shares provided the one bright spot among Nikkei
sectors, climbing 0.73% after crude oil closed above $90 for the
first time since last October.
Oil refiner Inpex ( IPXHF ) was the Nikkei's biggest
percentage gainer with a 1.3% jump.