Tokyo stocks edged down Friday amid a cautious mood ahead of U.S. jobs data for May due later in the day that could provide clues on the timing of prospective interest rate cuts by the Federal Reserve.
The 225-issue Nikkei Stock Average ended down 19.58 points, or 0.05 percent, from Thursday at 38,683.93. The broader Topix index finished 2.20 points, or 0.08 percent, lower at 2,755.03.
On the top-tier Prime Market, decliners were led by electric power and gas, transportation equipment and securities house issues.
The U.S. dollar fell to the lower 155 yen range in late afternoon after trading narrowly in the upper 155 yen zone, as the yen was bought after Japanese long-term interest rates climbed, dealers said.
Speculation has been growing that the Bank of Japan could decide at its policy meeting next week to further reduce government bond purchases as part of its efforts to normalize monetary policy.
On the stock market, investors awaited the key U.S. employment report after recent data showed signs of weakness in the world's largest economy, while technology issues tracked declines in their U.S. peers overnight.
The U.S. economy is widely expected to add 180,000 nonfarm jobs in May from the previous month, after a fewer-than-expected increase of 175,000 in April, while the unemployment rate is projected to remain at 3.9 percent.
"There is a risk that shares will be sold if the data fall below expectations and stir fears about an economic deterioration, while stocks may also drop if the results turn out to be stronger than projected and send U.S. interest rates higher," said Yutaka Miura, senior technical analyst at Mizuho Securities Co.
"The best outcome for the market would be results matching market expectations," Miura said.
