Japan's Nikkei share average fell 1.3 per cent today to its lowest close in a month, with Sony and other exporters slipping as investors locked in profits on caution ahead of US jobs data.
Market players said selling by hedge funds also weighed on the market.
Sanyo Electric lost a fifth of its value after Panasonic launched a bid for shares in the world's largest rechargeable battery maker.
Although Panasonic's offer was unchanged from terms announced a year ago, market players said there had been some speculation it could revise up its offer price closer to Sanyo's trading price.
In light trade, the benchmark Nikkei shed 126.87 points to 9,717.44, its lowest finish since October 6th. The broader Topix slipped 0.7 per cent to 874.96.
The private-sector jobs report by ADP Employers Services, often seen as foreshadowing US government figures, showed companies cut 203,000 jobs in October, fewer than the revised 227,000 in September and the lowest since July 2008.
The Federal Reserve yesterday reiterated its intent to keep interest rates low, in line with expectations. Although Wall Street rallied in response it soon lost steam, with investors turning their eyes to jobs data due out tomorrow.
The dollar fell 0.3 per cent to around 90.50 yen today, pressured by the Federal Reserve reiterating its commitment on low rates.
Reuters