* Toyota falls after Trump threatens on Mexico manufacturing
* Fast Retailing contributes hefty negative 91 points to
* Nikkei up 1.8 percent so far for week
By Ayai Tomisawa
TOKYO, Jan 6 Japan's Nikkei share average
dropped on Friday morning as automakers dragged after incoming
U.S President Donald Trump threatened to slap punitive taxes on
Toyota cars imported into the United States from Mexico.
Index heavyweight Fast Retailing also dragged on the market
after reporting weak monthly sales.
The Nikkei fell 0.4 percent to 19,439.24 in
midmorning trade, after hitting as low as 19,354.44 earlier,
although the benchmark index is up 1.8 percent for the week so
Fast Retailing Co dived 5.6 percent and contributed
a hefty negative 91 points to the benchmark index after saying
that same-store sales at its Uniqlo clothing outlets in Japan
fell 5 percent in December from a year earlier.
Toyota Motor Corp fell more than 3 percent at one
point after Trump threatened to impose heavy taxes on the
automaker if it builds its Corolla cars in Mexico for the U.S.
Other Japanese carmakers also fell, with both Honda Motor Co
and Nissan Motor Co falling more than 2
Analysts said that investors are focused on U.S. jobs data
due out later in the day, and overall trading will likely be
subdued before a long weekend in Japan.
Markets in Japan will be closed on Monday for a national
"In the near-term, investors are looking at the volatile
dollar-yen moves," said Nobuhiko Kuramochi, a strategist at
That said, the current dollar-yen levels are still
favourable for Jan-March earnings for Japanese exporters, which
had expected a much stronger yen, Kuramochi added.
"The Nikkei is likely to gain further in the next few weeks
on hopes that companies' earnings will be stronger than
expected," he said.
At 0147 GMT, the dollar rose 0.6 percent at 116.02 yen
after falling 1.6 percent overnight.
The broader Topix dropped 0.4 percent to 1,549.92
and the JPX-Nikkei Index 400 fell 0.4 percent to
(Reporting by Ayai Tomisawa; Editing by Eric Meijer)