Japan's Nikkei declines as stronger yen drags; investors eye US jobs
Updates with levels as of 0230 GMT
By Brigid Riley
TOKYO, Aug 21 (Reuters) -Japan's Nikkei share average declined in morning trade on Wednesday, as yen gains overnight weighed on domestic stocks and investors turned cautious ahead of the release of revisions to U.S. employment data.
The Nikkei .N225 was down 0.7% at 37,805.35 as of the midday break, while the broader Topix .TOPX fell 0.6% to 2,655.29.
The declines ran opposite to the yen's movements, which was last trading around 145.36 per dollar JPY=EBS after falling as far as 147.34 the previous day.FRX/
A stronger yen tends to drag on exporter shares as it decreases the value of overseas profits in yen terms when firms repatriate them to Japan.
Market players also await the release of preliminary benchmark revisions to U.S. employment data for the 12 months through March, due later on Wednesday.
Although recent economic data has eased fears of an imminent U.S. recession, markets remain sensitive to labour-related data.
The upcoming revisions will be key on Wednesday, said Charu Chanana, global market strategist and head of FX strategy at Saxo.
"If the number drifts closer to 1 million (fewer jobs created than previously estimated), that could spook volatility in the market amid renewed concerns around the U.S. labour market."
A weak jobs report at the start of August sparked market stress over the risk of a hard landing for the world's largest economy.
Federal Reserve Chair Jerome Powell will make remarks at the Jackson Hole Economic Symposium on Friday, which market players will scrutinise for confirmation that the Fed is on track for a small rate cut in September.
Major chip-related shares were among those trading in the red, following declines in their U.S. peers to weigh on the Nikkei. .N
Tokyo Electron 8035.T fell 1.5% and Advantest 6857.T was down about 3%.
Among other shares, Seven & I Holdings 3382.T was up 3.3% after slumping on Tuesday as investors continued to weigh a takeover proposal from Canada's Alimentation Couche-Tard ATD.TO.
Cosmetic company Shiseido 4911.T slid about 5% to become the biggest percentage loser.
Reporting by Brigid Riley; Editing by Tom Hogue and Janane Venkatraman
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