* Fast Retailing contributes hefty gains to Nikkei
* For the week, Nikkei has shed 1 pct
* Takata soars on investment hopes
By Ayai Tomisawa
TOKYO, June 3 (Reuters) - Japanese stocks rose on Friday morning, supported by gains on Wall Street and a sharp jump in index-heavy Fast Retailing after the clothing retailer posted strong monthly sales.
The Nikkei advanced 0.5 percent to 16,646.55 in midmorning trade after suffering its biggest daily percentage drop in a month on Thursday. For the week, the benchmark index has shed 1.0 percent.
Trading is expected to be subdued before the outcome of the U.S. jobs report later in the day as investors continue to assess the prospects of the Federal Reserve hiking interest rates at its June 14-15 meeting.
Data on Thursday showed U.S. private employers increased hiring in May and new applications for jobless benefits fell last week, further boosting the economic outlook for the second quarter.
Domestically, the focus will be on how the dollar-yen responds to key events in coming weeks, including Fed policy, the Bank of Japan’s rate review this month and the June 23 referendum to decide whether Britain should stay in or exit the European Union.
“It will take some time for the market to be worry-free,” said Hiroaki Mino, director of investment information department at Mizuho Securities. “Overall consensus is that investors are relieved that the government decided to delay the sales tax hike. But since there are some risks ahead, they will likely take positions very carefully.”
On Friday, exporters were mixed, with Toyota Motor Corp rising 0.1 percent, Honda Motor Co adding 0.6 percent and Nissan Motor Co dropping 0.5 percent.
Fast Retailing Co jumped 8 percent and contributed a hefty 68 points to the Nikkei benchmark after the clothing retailer said that same-store sales at its Uniqlo clothing outlets in Japan rose 5.9 percent in May from a year earlier.
Takata Corp soared more than 10 percent helped by hopes of a fresh offshore investment. Michigan-based air bag maker Key Safety Systems and new Chinese parent Ningbo Joyson Electronic Corp are discussing a potential investment in Takata with the Japanese company’s investment banker Lazard, Key Chief Executive Jason Luo said on Thursday.
The broader Topix added 0.4 percent to 1,337.06 and the JPX-Nikkei Index 400 advanced 0.3 percent to 12,045.36. (Editing by Shri Navaratnam)