Tokyo stocks down 0.34 percent by break

TOKYO– Tokyo stocks fell 0.34 percent by the break in light trade Friday as dealers look ahead to the release of key China data next week, with fears growing over the health of the Asian giant’s economy.

The Nikkei 225 index at the Tokyo Stock Exchange was down 30.43 points at 8,919.44, while the Topix index of all first-section issues slipped 0.47 percent, or 3.53 points, to 742.06.

“Although Chinese markets are on holiday next week, upcoming China PMI data will be closely watched for more signs confirming an economic slowdown,” said Hiroichi Nishi, general manager of equities at SMBC Nikko Securities.

China’s purchasing managers’ index (PMI) is due out on Monday, which will provide fresh clues to the state of the world’s number two economy following a string of figures showing a slowdown.

Shortly before the opening bell, the industry ministry said Japan’s factory output fell 1.3 percent month-on-month in August, a much sharper decline than a 0.4 percent drop the market had expected.

The data fuelled concerns about the stuttering economy but the market opened higher following gains on Wall Street after Spain unveiled a 2013 budget with severe cuts and reforms that paves the way for a bailout.

Shipping companies fell with Nippon Yusen down 3.49 percent at 138 yen and Mitsui OSK off 2.65 percent at 183 yen.

Sony lost 0.43 percent to 925 yen while Olympus rose 1.53 percent to 1,517 yen on expectations that a capital injection by Sony into scandal-wracked Olympus will be announced Friday.

On Wall Street the Dow Jones Industrial Average advanced 0.54 percent to 13,485.97 on Thursday.

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