Upbeat U.S and Japanese economic data and fears of recession in Europe kept the euro pinned just above four-month lows on Friday in Asia, prompting profit-taking of major exporters such as Toyota and NEC.
Tokyo's Nikkei 225 slipped 0.79 percent, or 81.52 points to 10,281.17. Toyota Motor Corp, Japan's top auto maker, dropped 3.23 percent to 3,300 yen, while NEC Electronics Corp fell 5.61 percent. The TOPIX index lost 0.53 percent.
Despite the pressure on foreign currency earners, and the Nikkei ending lower for the first time in five sessions, traders were optimistic about further gains next week.
"The dollar's fall into the 117 yen zone is a bit worrying, but most investors are still convinced sentiment is strong enough to push the Nikkei to at least 10,500 in the near term," said Terushi Hirotama, head of trading at Ichiyoshi Securities.
"Money is flowing into sectors that concentrate on the domestic economy where currency movements are of little concern."
Local retailer Ito-Yokado Co Ltd jumped almost 7.5 percent.
Japanese data released early on Friday showed economic activity rose firmly in June from the previous month, with the all-industries activity index up 0.9 percent.
That followed encouraging signs on the U.S. economy in the Philadelphia Federal Reserve manufacturing survey and reports on jobless claims and leading indicators, and contrasted sharply with German data on Thursday showing an economy in recession for the second time in as many years.
At 2 a.m. EDT, the euro was changing hands at $1.0931/36 weaker than the U.S. close of $1.0923/29 but still within half a cent of a four-month low around $1.0885.
Against the yen, the euro was trading at 128.81/92 yen compared with 128.63/74 yen in late New York and half a yen higher than a four-month low of 128.30 yen hit in New York.
The dollar was trading at 117.89/94 yen slightly above a one-month low of 117.60 yen set in New York.
Dealers expected the yen to keep an upbeat tone but be contained by fears of Japanese currency intervention.
ASIA'S GAINS
Most other Asian stock markets were marginally higher.
While Japanese tech exporters were hit, other Asian electronics names took heart from a 3.2 percent rise on the Philadelphia Stock Exchange's semiconductor index, which rose after Lehman Brothers upgraded the European semiconductor and chip equipment sector.
South Korean stocks rose a tiny 0.05 percent as investors took profit in blue chip SK Telecom, but the market's biggest stock, and Asia's most valuable tech share, Samsung Electronics stayed strong rising 1.02 percent to 446,000 won.
The broader market managed its strongest finish since it ended at 771.45 points on July 16, 2002.
Taiwan stocks closed at a fresh 14-month high, lifted by better-than-expected economic data that showed export orders in July at a record high and heavy buying by foreign funds.
OIL DIPS, GOLD SHINES
NYMEX crude futures slipped in light profit-taking after prices surged above $32 per barrel in New York, pushed higher by thin gasoline supplies in the United States.
Front-month October crude slipped 15 cents a barrel to $31.73 at 2:53 a.m. EDT, while front-month September NYMEX gasoline fell 1.03 cent to $1.089 per gallon.
Gold perked up in Asia as bargain hunters got busy after an overnight tumble that erased a two-day rally and Japanese players took full advantage of a stronger yen against the dollar.
Spot gold fetched $360.50/1.25 an ounce at 0632 GMT, having risen in the morning as high as $362.50. That compared with $360.35/85 last quoted in New York.
Tokyo's Nikkei 225 slipped 0.79 percent, or 81.52 points to 10,281.17. Toyota Motor Corp, Japan's top auto maker, dropped 3.23 percent to 3,300 yen, while NEC Electronics Corp fell 5.61 percent. The TOPIX index lost 0.53 percent.
Despite the pressure on foreign currency earners, and the Nikkei ending lower for the first time in five sessions, traders were optimistic about further gains next week.
"The dollar's fall into the 117 yen zone is a bit worrying, but most investors are still convinced sentiment is strong enough to push the Nikkei to at least 10,500 in the near term," said Terushi Hirotama, head of trading at Ichiyoshi Securities.
"Money is flowing into sectors that concentrate on the domestic economy where currency movements are of little concern."
Local retailer Ito-Yokado Co Ltd jumped almost 7.5 percent.
Japanese data released early on Friday showed economic activity rose firmly in June from the previous month, with the all-industries activity index up 0.9 percent.
That followed encouraging signs on the U.S. economy in the Philadelphia Federal Reserve manufacturing survey and reports on jobless claims and leading indicators, and contrasted sharply with German data on Thursday showing an economy in recession for the second time in as many years.
At 2 a.m. EDT, the euro was changing hands at $1.0931/36 weaker than the U.S. close of $1.0923/29 but still within half a cent of a four-month low around $1.0885.
Against the yen, the euro was trading at 128.81/92 yen compared with 128.63/74 yen in late New York and half a yen higher than a four-month low of 128.30 yen hit in New York.
The dollar was trading at 117.89/94 yen slightly above a one-month low of 117.60 yen set in New York.
Dealers expected the yen to keep an upbeat tone but be contained by fears of Japanese currency intervention.
ASIA'S GAINS
Most other Asian stock markets were marginally higher.
While Japanese tech exporters were hit, other Asian electronics names took heart from a 3.2 percent rise on the Philadelphia Stock Exchange's semiconductor index, which rose after Lehman Brothers upgraded the European semiconductor and chip equipment sector.
South Korean stocks rose a tiny 0.05 percent as investors took profit in blue chip SK Telecom, but the market's biggest stock, and Asia's most valuable tech share, Samsung Electronics stayed strong rising 1.02 percent to 446,000 won.
The broader market managed its strongest finish since it ended at 771.45 points on July 16, 2002.
Taiwan stocks closed at a fresh 14-month high, lifted by better-than-expected economic data that showed export orders in July at a record high and heavy buying by foreign funds.
OIL DIPS, GOLD SHINES
NYMEX crude futures slipped in light profit-taking after prices surged above $32 per barrel in New York, pushed higher by thin gasoline supplies in the United States.
Front-month October crude slipped 15 cents a barrel to $31.73 at 2:53 a.m. EDT, while front-month September NYMEX gasoline fell 1.03 cent to $1.089 per gallon.
Gold perked up in Asia as bargain hunters got busy after an overnight tumble that erased a two-day rally and Japanese players took full advantage of a stronger yen against the dollar.
Spot gold fetched $360.50/1.25 an ounce at 0632 GMT, having risen in the morning as high as $362.50. That compared with $360.35/85 last quoted in New York.
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