TOKYO (dpa-AFX) - The Japanese stock market has tracked lower in consecutive trading days, sinking almost 700 points or 1.2 percent in that span. The Nikkei 225 now sits just above the 65,600-point plateau although it may stop the bleeding on Monday.
The global forecast for the Asian markets is cautiously optimistic on an improved outlook for interest rates, although erratic tensions in the Middle East may limit the upside. The European and U.S. markets were up and the Asian bourses are expected to follow that lead.
The Nikkei finished slightly lower on Friday as losses from the technology companies were offset by support from the financial sector.
For the day, the index dipped 76.55 points or 0.12 percent to finish at 65,606.71 after trading between 64,651.49 and 65,990.72.
The lead from Wall Street is positive as the major averages shook off early volatility before settling solidly higher for the balance of the day.
The Dow added 151.83 points or 0.28 percent to finish at 54,036.93, while the NASDAQ jumped 342.26 points or 1.30 percent to end at 26,690.62 and the S&P 500 gained 47.68 points or 0.62 percent to close at 7,757.64.
For the week, the NASDAQ spiked 5.2 percent, the S&P 500 jumped 3.6 percent and the Dow rose 3 percent.
The strength on Wall Street came amid easing concerns about the outlook for interest rates after the Labor Department unexpectedly reported a modest decrease in U.S. employment in July.
While the report pointed to some weakness in the labor market, the data is also seen as decreasing the chances of the Federal Reserve raising interest rates next month.
Crude oil prices advanced on Friday amid lingering uncertainty in the Middle East following attacks by the Iran-aligned Houthis on a military camp in Yemen and in Saudi Arabia. West Texas Intermediate crude for September delivery was up $0.81 or 1.1 percent at $78.10 a barrel.
Closer to home, Japan will release June figures for its current account, which is expected to show a surplus of 1.512 trillion yen, down from 3.968 trillion yen in May.
Japan also will see July numbers for bank lending and the Eco Watchers Index. Lending is called unchanged at 5.7 percent, while the index for current conditions is tipped to show a score of 44.6 - up from 44.0 in June.
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