Japan's Nikkei slumps to weekly loss as Fed outlook weighs

The broader dropped 0.44%.

All three main U.S. declined overnight, led by a 1.5% slump for the Dow, after U.S. manufacturers reported a surge in prices for a range of inputs, suggesting that goods inflation could pick up in the months ahead.

The benchmark U.S. 10-year climbed to a more than one-week peak of 4.498% as traders pared back bets to a likely single quarter-point rate reduction this year, from a consensus for two cuts previously.

"It definitely seems, at least in the short term, that moves in Japanese are in the hands of ," , an equities strategist at said.

While the Nikkei was firmly down on the day, the strategist pointed to support from 25-day moving average at around 38,300 as holding firm. And with the indicator turning slightly upward as of the close of Friday's trading, "the Nikkei could potentially hold at current levels or even flip to gains from next week", he said.

For the week, the Nikkei has lost 0.36%, but remains up more than 15% this year, keeping it squarely among the top performing markets globally.

It rose to an all-time high of 41,087.75 on March 22 before pulling back over the following month to as low as 36,733.06.

On Friday, that had rallied the previous day on the back of earnings retreated sharply to be among the Nikkei's worst performers.

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