The very optimistic view of the U.S. economy has already been priced in. We can't expect further monetary easing from the Fed, "On the other hand, we see uncertainty in the European debt crisis and the general elections in Greece and the presidential election in France will only create further uncertainty.
The benchmark Nikkei dropped 0.8 percent to 9,688.45, falling for a fourth consecutive session. The index was off 3.9 percent on the week, its worst weekly performance since the week of Aug. 1-5 when it shed 5.4 percent.
Despite this week's sharp losses, the Nikkei is still up 14.6 percent this year, buoyed by a run of strong U.S. economic data and liquidity boosting programmes by central banks.
Strategists expected the market correction to last until late April or mid-May, when Japanese companies will announce earnings guidance for the current fiscal year, though they said the Nikkei should hold above 9,000.
investors can buy Nikkei options with the right to sell the index at 9,500 in April or May as a "cheap" hedge against a disappointing U.S.jobs report.
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