Tokyo investors to focus on forex, US jobs data next week

Tokyo investors will keep a close eye on currency markets and fresh US economic data next week, dealers said, after the Japanese market climbed to near six-year highs.

The dollar has jumped against the yen to its highest level in half a year, prompting investors to scoop up shares of Japanese exporters which benefit from the weak Japanese currency by making them more competitive overseas and inflating repatriated foreign income.

"Players will keep watching foreign exchange rates, which have been one of the major factors behind the recent rally," said Katsuhiro Kondo, a broker with Tokai Tokyo Securities.

"They're also going to be paying attention to US economic indicators, led by unemployment figures," he added.

Investors are looking for signs about the state of the world's biggest economy, a key factor in the Fed's timeline for tapering its monetary easing drive.

Tokyo's benchmark Nikkei index slipped 0.41 percent Friday but tacked on 1.82 percent over the week to 15,661.87. It closed at its highest level in nearly six years on Thursday.

The Topix index of all first-section shares was down 0.19 percent Friday to 1,258.66, adding 0.81 percent over the week.

"Profit-taking is likely to emerge as the recent gains came quite fast, but buying sentiment appears strong enough to digest it for the moment," Kondo said.

In share trading Friday, Panasonic slipped 2.08 percent to 1,175 yen after a 15 percent rally over the past week.

Sony edged up 0.10 percent to 1,867 yen, Toyota slipped 0.15 percent to 6,380 yen, while Nissan declined 0.31 percent to 936 yen.

On forex markets, the dollar was at 102.30 yen, up from 102.24 yen on Thursday.

Just before the Tokyo market opened, the government released data showing inflation rising at its fastest pace since August 1998.

However, investors largely ignored the figures, which were in line with expectations.

European stock markets rose on Thursday but Wall Street was closed for the US Thanksgiving holiday.