Japan's Nikkei edges lower on stronger yen, chip losses

 Japan's Nikkei share average fell on Thursday, weighed down by a stronger yen and losses in semiconductor-related stocks, while investors awaited US non-farm payroll data due on Friday to gauge the strength of the world's largest economy.

The Nikkei .N225 was down 0.35 per cent at 36,917.44 by the midday break after sliding more than 1 per cent earlier in the session. The benchmark was on track for a third straight session of falls.

The broader Topix .TOPX recouped early losses to end the morning session up 0.39 per cent at 2,643.83.

"The labour data out so far this week has not really cooled concerns about the US economy, and there is a slight tilt towards expecting the Fed's first rate cut to be of a larger magnitude," making the dollar/yen prone to more slides, said Charu Chanana, global market strategist and head of FX strategy at Saxo.

"This could continue to take some of the speculator froth out of Japanese equities."

The yen edged 0.26 per cent higher to 143.56 per dollar during morning trade before easing, and has already gained nearly 2 per cent for the week thus far. FRX/

US stocks closed mixed on Wednesday. Shares of chip star Nvidia NVDA.O, which suffered a massive $279 billion drop in market value on Tuesday, closed 1.7 per cent lower..N

In Japan, shares of chip-related majors Tokyo Electron 8035.T and Advantest 6857.T slid 2.5 per cent and 2.1 per cent, respectively. Advantest counts Nvidia among its customers.

Renesas Electronics 6723.T fell 3.6 per cent to become the largest percentage loser on the Nikkei.

Among individual stocks, Nippon Steel5401.T recouped early losses to trade up 1.4 per cent. Sources told Reuters on Wednesday that US President Joe Biden was close to blocking Nippon Steel's takeover of US Steel X.N. on national security risks.

Nikkei heavyweight Fast Retailing 9983.T fell 3.1 per cent to pull the index further down.