Japan's Nikkei falls on caution ahead of US jobs data

Japan's Nikkei share average fell on Friday for a fourth straight session ahead of the release of the key US non-farm payrolls, while a stronger yen weighed on sentiment.

The Nikkei closed 0.72 per cent lower at 36,391.47 points, after falling as much as 1.7 per cent.

For the week, the index lost 5.15 per cent, its worst week since July 26.

"Investors wanted to reduce risks as they braced for a weak outcome of the US jobs data, which prompted a sell-off of stocks," said Shingo Ide, chief equity strategist at NLI Research Institute.

The yen rose to a one-month high ahead of the key US jobs data due later in the day that could decide the size and speed of coming rate cuts in the world's largest economy.

A firmer yen hurts exporters as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.

Chip-making equipment maker Tokyo Electron fell 1.9 per cent to drag the Nikkei the most. Chip-testing equipment maker Advantest lost 1.38 per cent and technology investor SoftBank Group lost 1.76 per cent.

Seven & i Holdings fell 1.43 per cent, after the retail giant said it had rejected Canada's Alimentation Couche-Tard's $38.5 billion cash bid for the company because the proposal was not in the interest of shareholders.

The broader Topix fell 0.89 per cent to 2,597.42, dragged lower by electronic appliance maker Hitachi, which lost 3.57 per cent. Sony Group fell 2.55 per cent.

The index lost 3.4 per cent for the week.

Of the more than 1,600 shares on the Tokyo Stock Exchange's prime market, 26 per cent of stocks rose and 70 per cent fell, with 2 per cent trading flat.