Nikkei little changed, U.S. jobs data in focus

MARKETS-JAPAN-STOCKS-NIKKEI:Nikkei little changed, U.S. jobs data in focus

Japan's Nikkei was little changed on Friday as market players looked to U.S. payroll figures later in the day to gauge the extent of a slowdown in the world's largest economy and possibility the Federal Reserve will take steps to deal with it.

Japanese shares were capped after fresh monetary easing in Europe and China on Thursday failed to boost investor appetite for risk.

"A rate cut by the European Central Bank was sort of expected. In the case of China, I think investors need either of two things - more concrete proof of a rebound or fiscal stimulus," said Ryota Sakagami, chief strategist at SMBC Nikko Securities.

The benchmark Nikkei share average fell 0.1 percent to 9,072.60, edging down further from a two-month closing high of 9,104 struck on Wednesday, while the broader Topix index also dropped 0.1 percent to 776.99.

The Nikkei's rally from its June 4 closing low of 8,295 has so far failed to reach 9,275, the 50 percent retracement of its decline from the March high of 10,255.

"The Nikkei's failure to hit the 50 percent retracement even after positive developments such as yesterday's easing suggests that the market is likely to head back down," said Daisuke Uno, chief strategist at Sumitomo Mitsui Bank.

A poor reading in the U.S. jobs data could raise more worries about corporate earnings and further undermine global shares, though expectations of more stimulus from the Federal Reserve could curb losses, analysts said.

Amid concerns about the global economy, investors continued to favour domestic demand oriented firms. Real estate companies gained 1.1 percent while building companies rose 0.7 percent and food companies gained 0.6 percent.

In contrast, exporters were generally weak, with the electronics sector losing 1.2 percent.