Tokyo - Japanese stocks lost ground Friday as a drop in the country's unemployment rate failed to offset discouraging reports from the US job market and the yen further strengthened against the dollar. The Nikkei 225 Stock Average lost 246.77 points, or 2.47 per cent, to stand at 9,731.87, its lowest closing figure in 10 weeks.
The broader-based Topix index also fell 21.45 points, or 2.39 per cent, to 874.67.
Over the week, both the Nikkei and the Topix dropped 5.2 per cent.
Japan's unemployment rate improved from a record 5.7 per cent in July to 5.5 per cent in August, the government's statistics office said. The US Labor Department said Thursday new claims for unemployment benefits rose unexpectedly last week by 17,000 to 554,000.
A stronger yen negatively affects the competitiveness of Japanese exporters overseas.
On currency markets at midday (0300 GMT), the dollar traded at 89.39-41 yen, down from 89.97-99 yen in late trading Thursday.
The euro traded at 1.4539-41 dollars, down from 1.4591-93 dollars, and at 129.96-98 yen, down from Thursday's 5 pm quote of 131.28-32 yen.
