Japan's Nikkei average hit a two-month closing low today after data stirred worries that the US economic recovery may be losing momentum and as a rise in the yen hits exporters such as Tokyo Electron.
The Nikkei fell 2.5 per cent or 246.77 points to 9,731.87, its lowest close since July 22nd.
The average slid 5.2 per cent on the week for its biggest weekly drop in about three months. The broader Topix dropped 2.4 per cent to 874.67 today.
The euro headed for a second weekly loss against the dollar on speculation Group of Seven finance officials meeting in Istanbul this weekend will discuss the euro's gains.
The Japanese currency strengthened to 130.06 versus the euro as of 2.50pm in Tokyo from 130.35 in New York yesterday. It earlier reached 129.64, the highest level since July 14th. The greenback was at $1.4540 per euro from $1.4545. It earlier touched
$1.4503, the highest level since September 10th.
The yen was at 89.44 per dollar from 89.60.
A survey showed the US unemployment rate rose to 9.8 per cent in September from 9.7 per cent in August. The Labor Department will release the figures today in Washington.
Sachs Group yesterday changed its forecast on the payrolls data to show larger cuts, citing "disappointing" economic data, including the number of people receiving jobless benefits.
Payrolls probably fell by 250,000 workers last month rather than the 200,000 Goldman Sachs had previously estimated, chief US economist Jan Hatzius said in a note.