* Higher yields bolster banking, securities shares
* Shares of Apple suppliers pressured
TOKYO Dec 2 Japan's Nikkei share average was
poised for a weekly gain but dipped as investors locked in gains
ahead of U.S. jobs data later in the session, with losses kept
in check as higher Japanese yields lifted financial shares.
The Nikkei was down 0.5 percent at the end of
morning trade at 18,425.45, but up 0.2 percent for the week, in
which it probed 11-month highs.
The broader Topix as well as the JPX-Nikkei Index
400 were both down 0.2 percent at 1,480.79 and
"Profit-taking ahead of the weekend is the likely cause of
today's Nikkei drop," said Hiroki Allen, chief representative of
Superfund Japan in Tokyo, noting a spate of event risks ahead.
But shares of lenders and securities firms rose in line with
higher yields on Japanese government bonds after yields on
10-year U.S. Treasuries jumped to their highest
levels since June 2015.
The Tokyo Stock Exchange banking subindex gained
3.2 percent, and the securities subindex was up 3.5
"The banking and financial sector is really kicking all of
this up, but what we're seeing this morning is people reacting
to the uncertainties," said Gavin Parry, managing director of
Parry International Trading in Hong Kong.
"We've got the jobs data tonight, with more probability of a
negative shock than a positive shock, because the positive is
already factored in," he said. "We also have the Italian
referendum on Sunday, which is a toss of a coin."
Economists polled by Reuters expect the nonfarm payrolls
report to show that U.S. employers added 175,000 jobs in
November, compared to 161,000 in October.
If the government loses Sunday's referendum on
constitutional reform it will be harder for Italy's struggling
banks to recapitalise, Economy Minister Pier Carlo Padoan said
Apple Inc's Japanese suppliers underperformed the
broader market, after Apple reportedly began reducing orders for
iPhone 7, according to DigiTimes.
Alps Electric fell 3.3 percent, Taiyo Yuden
shed 1.8 percent, and Murata Manufacturing
dropped 2.9 percent.
(Reporting by Tokyo markets team; Editing by Eric Meijer)