Nikkei falls as U.S. job data stokes concern Fed could hike in Sept
* Index drop could be start of market correction - analyst * Upward revision in Japan Q1 GDP data has little impact * Market reminded of 2013 'taper tantrum' - analyst By Ayai Tomisawa TOKYO, June 8 (Reuters) - Japan's Nikkei share average fell to a two-week low on Monday morning after strong U.S. jobs data stoked concerns that the Federal Reserve will raise interest rates as early as September, triggering profit-taking in exporters and other recent gainers. The Nikkei 225 dropped 0.3 percent to 20,407.40 in midmorning trade after falling as low as 20,359.06, the weakest intraday level since May 25. U.S. nonfarm payrolls jumped 280,000 last month, the largest gain since December, while payrolls for March and April were revised to show 32,000 more jobs were created than previously reported, the Labor Department said. After the data release, the dollar rose to a 13-year high of 125.86 yen on Friday, and last stood at 125.66 yen. A weaker yen did little help to exporters, with Toyota Motor Corp falling 1.3 percent, Nissan Motor Co dropping 1.4 percent and Panasonic Corp 1.1 percent. "Some people still may say a weak yen is positive to Japanese stocks. But you don't want to be optimistic as it may be the start of a big correction," said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. "It may not be as dramatic as (2013) 'taper tantrum' but what you see in the moves of emerging markets' currencies may be indicating what comes next and people are reminded about that," Fujito said, referring to how global markets reacted to the Fed's first hint of cutting its bond-buying two years ago. The Malaysian ringgit hit a nine-year low against the dollar on Monday, while Latin American currencies weakened on Friday after the strong U.S. employment data. Upbeat Japanese economic data did little to boost sentiment. Japan's economy expanded more than initially expected in January-March as companies ramped up capital investment, underscoring the central bank's view that recovery from last year's recession is gaining momentum. Traders said that the market had known that corporate capital expenditure would be strong, as reported in corporate spending data a week ago. The broader Topix dropped 0.5 percent to 1,659.49 and the JPX-Nikkei Index 400 shed 0.5 percent to 14,981.72. (Editing by Richard Borsuk)
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