RTTNews - The Japanese market fell sharply in early trading on Friday with the overnight fall on Wall Street on the back of weak employment report triggering a sell-off across the board. With the U.S. employers cutting more jobs in June, pushing the unemployment rate to 9.5%, its highest level in 26 years, hopes of a swift economic recovery have taken a severe beating now.

The Nikkei, which fell to 9,691 earlier this morning, is currently trading at 9,769, down 107.15 points or 1.08% from its previous close. On Thursday, the index had ended at 9,876, posting a loss of 63.78 points or 0.64%.

Bank stocks are mostly trading lower. Sumitomo Mitsui Financial, Shizuoka Bank, Sumitomo Trust and Banking, Chiba Bank, Chuo Mitsui Trust Holdings, Resona Holdings, Mitsubishi UFJ Financial, Bank of Yokohama, Fukuoka Financial and Mizuho Financial Group and Mizuho Trust & Banking are down by 2% - 4%.

Shares of other financial services and insurance firms are trading in the red this morning. Chemicals, pharmaceuticals, foods, machinery, steel and non-ferrous metals are also trading weak.

Automobile stocks Honda Motor, Suzuki Motor, Toyota Motor, Hino Motors, Nino Motor and Mazda Motor are all down in the red with notable losses.

Nomura Holdings Inc. shares, which fell as much as 23 yen to hit 795 yen this morning amid overall market weakness and profit-taking, have rebounded into positive territory and are currently trading modestly higher.

Hoya Corp is trading higher for the fourth straight day on reports that the maker of optical lenses and eyeglasses likely posted a 7-9 billion yen group operating profit in the April-June term, the first positive figure in two quarters. The stock is up by around 1.5% at present.

In the currency market, the U.S. dollar traded in the upper 95 yen zone early Friday in Tokyo, down slightly from its levels overnight in New York. The yen is currently trading at 95.80 to the U.S. dollar.

Other markets in the Asia-Pacific region are also trading in the red today. The Australian market is down sharply with its benchmark indices S&P/ASX 200 and All Ordinaries trading lower by around 1.5%. The Straits Times index of the Singapore market is down by 1.1%. Key indices of Taiwan and Korean markets are also down with notable losses.

Wall Street ended with sharp losses on Thursday as disappointing employment data triggered a fairly heavy sell-off. The sharp decline in non-farm payroll employment in June pushed up unemployment rate to 9.5%, its highest level since August 1983.

The mood had turned so bearish following the release from the Labor department that a better-than-expected report card on the manufactured goods orders front failed to alter the fortunes of the market during the session.

The Dow closed down by 223.32 points or 2.6 percent at 8,281, the Nasdaq fell by 49.20 points or 2.7 percent to 1,796, and the S&P 500 closed down 26.91 points or 2.9 percent at 896.

Stock markets across the Asia-Pacific region had ended Thursday's session mostly lower. Japan's benchmark Nikkei 225 Index closed down by 0.6 percent, while Hong Kong's Hang Seng Index slipped by 1.1 percent.

Major European markets also closed firmly in the red, with the German DAX Index and French CAC 40 Index finishing down by 3.8 percent and 3.1 percent, respectively. The U.K.'s FTSE 100 Index also fell, posting a loss of 2.5 percent on the day.

Oil dropped to its lowest level in nearly a month on Thursday as the weak employment data sparked demand concerns. Crude finished in negative territory for a third straight session, losing US$2.58 to settle at US$66.73.

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