Japan's Nikkei average fell 0.6 per cent to hit an 11-week closing low today, dented by shares of exporters on concerns over the fragility of the US economic recovery and lingering worries about the yen's recent strength.
But a surge in shares of Fast Retailing after it said domestic same-store sales at its Uniqlo casual-clothing chain jumped 32 per cent in September, provided support to the benchmark index, which earlier moved in and out of negative territory.
In moderate trade, the Nikkei slipped 57.38 points to 9,674.49, its lowest finish since July 21st.
The broader Topix declined 0.8 per cent to 867.28.
Weaker-than-expected US jobs data weighed on investor confidence, although analysts said the numbers had not drastically altered expectations that the US economy would recover gradually.
The Nikkei fell 5.2 per cent last week, its worst weekly loss in about three months. It has fallen below trendline support drawn from its March trough near 7,021 and through its July low near 9,050, and on Friday the benchmark index dropped below the bottom of the cloud on daily Ichimoku charts.
Some analysts say the next downside target may be 9,500, with a break below that opening the way for a drop towards its July low of 9,050.
Banking shares rose after having recently been battered by worries that lenders may come out with share offerings in the face of a global regulatory push for banks to carry bigger capital buffers.
Top bank Mitsubishi UFJ Financial Group climbed 2.3 per cent to 455 yen and Mizuho Financial Group added 2.9 per cent to 179 yen. The banking sector subindex rose 0.9 per cent.
Nomura Holdings shot up 10.9 percent to 592 yen. Shares of Japan's largest brokerage plunged after it last month unveiled a $5.6 billion share sale plan aimed partly at meeting tougher capital requirements.
Following the strong monthly sales, Morgan Stanley raised its rating to "overweight" from "equal-weight", and UBS lifted the firm to "buy" from "neutral".
Exporters retreated on lingering concern that the yen's recent strength will curb their overseas profits. The yen stood around 89.80 yen to the dollar. It hit an eight-month high of 88.23 yen to the greenback last week.
Sony slid 2 per cent to 2,400 yen and Nikon dropped 7 per cent to 1,442 yen, while Honda shed 2.8 per cent to 2,595 yen and Toyota fell 0.9 per cent to 3,350 yen.
Some 1.9 billion shares changed hands on the Tokyo exchange's first section, in line with last week's daily average.
Declining stocks outnumbered advancing ones by 2 to 1.
Reuters