Nikkei drops after Wall Street losses

<p>Japanese shares ended down 0.42 per cent today after losses on Wall Street.</p>

Japanese shares ended down 0.42 per cent today (July 8th), pressured by losses on Wall Street and a persistent sense of market overheating. Exporters were also hit by a stronger yen.

The Nikkei briefly fell more than 150 points in early morning trading and closed down 65.03 points at 15,314.41.

"The market has been capped lately as people think that buying by pension funds has come to an end," Hideyuki Ishiguro, senior strategist at Okasan Securities, told Reuters.

US stocks fell yesterday as some analysts predicted that the market was due for a pullback from record highs last week, when a government report that showed the world's largest economy generated a stronger-than-expected 288,000 jobs in June.

Investors also awaited fresh data from China and corporate earnings.The Dow fell 0.26 per cent to 17,024.21.

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