CORRECTED-Nikkei wavers as yen's retreat halts, focus on US jobs report
(Corrects erroneous figure for JPX-Nikkei Index 400 in last paragraph)
By Shinichi Saoshiro
TOKYO Aug 30 (Reuters) - Japan's Nikkei share average treaded water on Tuesday, with momentum from the previous day's rally stalling as the yen's extensive retreat halted for the time being.
The Nikkei was effectively unchanged at 16,740.42 points after dipping to 16,677.85 earlier.
It has surged 2.3 percent on Monday as the yen plunged against the dollar following hawkish-sounding comments from Federal Reserve Chair Janet Yellen over the weekend which has revived expectations of an interest rate hike this year.
The markets' focus has now shifted to Friday's U.S. non-farm payrolls report and its impact on Fed policy, currencies and Wall Street shares.
"A strong jobs report would take the yen down further and bode well for the equity market. The key is how U.S. shares react to a strong report. If they come out relatively unscathed, the Nikkei could test fresh highs," said Masahiro Ichikawa, a senior strategist at Sumitomo Mitsui Asset Management.
Tokyo's banking and securities subindexes eked out gains following a rise by their Wall Street peers overnight, while retailers and information and communication fell to profit taking after rallying on Monday.
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