Nikkei stumbles as strong yen, weak earnings outlook take toll
By Joshua Hunt
TOKYO May 6 (Reuters) - Japanese stocks fell on Friday as caution prevailed ahead of a U.S. jobs report, while investors also worried about the impact of a strong yen on corporate profits.
The Nikkei share average declined 0.3 percent to 16,106.72 in its first day of trade following a three-day closure for national holidays. Japan's benchmark index ended the short trading week about 3.4 percent lower.
During the holiday closure, the yen climbed to a fresh 18-month high against the U.S. dollar, hurting the outlook for exporters and a broad swath of other shares that benefit from a weaker yen.
On Friday, disappointing corporate earnings weighed on Japanese indexes.
Sharp Corp ended 8.5 percent lower after the Nikkei business daily reported it likely posted a net loss of around 300 billion yen ($2.80 billion) for the year through March 2016.
Olympus Corp slid 4.6 percent after the precision instruments company announced a weak profit outlook.
Mitsubishi Motors Corp bucked the weakness, climbing 5.2 percent on strong April sales in North America and analyst comments that the automaker has the cash to pay compensation associated with its rigging of fuel-economy tests for some vehicles it sold in Japan.
The broader Topix edged down 0.1 percent to 1,298.32 and ended the shortened trading week about 3.1 percent lower.
The JPX-Nikkei Index 400 declined 0.1 percent to 11,737.36. ($1 = 107.1800 yen) (Reporting by Joshua Hunt; Editing by Richard Borsuk)
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