Tokyo stocks open lower as exporters fall
Tokyo, Japan | AFP | Tuesday – Tokyo stocks opened lower on Tuesday after three days of gains, with exporters suffering from a firm yen as investors looked for fresh trading clues.
The benchmark Nikkei 225 index fell 0.45 percent or 99.26 points to 22,049.95 in early trade while the broader Topix index was down 0.43 percent or 7.56 points at 1,767.59.
Investors were looking for trading leads after Europe’s major stock markets drifted lower Monday in a subdued start to the week, with volumes capped by holiday closures on Wall Street and some key Asian markets.
"There is a dearth of trading pegs as the US market was shut" on Monday, Okasan Online Securities said in a note.
"The dollar has been stuck in the mid-106 yen range, not high enough to wipe out worries over Japanese exporters’ earnings," it said, while adding bargain hunting may emerge after initial selling runs its course.
The dollar was trading at 106.75 yen, slightly up from 106.57 yen in London on Monday but still around its lowest level since late 2016.
A strong yen is negative for Japanese exporters as it erodes their profits when repatriated.
Carmakers dropped, with Toyota down 1.19 percent at 7,291 yen and Nissan off 0.93 percent at 1,116.5 yen.
Sony gained 0.33 percent to 5,323 yen after the Nikkei business daily reported the electronics giant would team up with major Japanese taxi companies to develop a hailing system using artificial intelligence.