TOKYO, July 22 ― Tokyo stocks opened lower today with investors growing cautious over a higher yen and ahead of a four-day holiday weekend in Japan.
The key Nikkei 225 index fell 0.34 per cent or 78.43 points to 22,805.79 in early trade while the broader Topix index was down 0.28 per cent or 4.39 points at 1,578.35.
“Caution is needed for selling to square positions ahead of the four day holiday in Japan,” Okasan Online Securities said in a note. Tokyo markets are closed from tomorrow to Sunday.
Global stock markets mostly rose yesterday along with the euro as EU leaders clinched an agreement on what they boasted was a historic rescue plan.
The agreement boosted European bourses and also lifted the single currency to its highest level against the dollar since early 2019.
The yen also rose against the dollar, dampening investor sentiment in Tokyo as a higher Japanese currency pressures Japanese exporter earnings.
The greenback was changing hands at ¥106.83 (RM4.25) in early Tokyo trade, a shade higher than ¥106.77 in New York yesterday afternoon but still sharply lower than the ¥107 levels seen on Monday.
The euro remained strong, buying US$1.1539 compared with and US$1.1522 in New York.
Following yesterday's approval of the euro fund, “rotation out of US and into European stocks might be a theme that establishes legs in coming weeks,” said Ray Attrill, head of forex strategy at National Australia Bank.
“A new point of focus for market now is the 'cliff edge' that the US faces as early as this weekend” when the $600 weekly unemployment benefit paid under the Pandemic Unemployment Assistance is due to expire, he said in a commentary.
In Tokyo stocks trade, selling went to high-tech stocks with microchip-testing equipment maker Tokyo Electron falling 0.81 per cent to ¥29,560.
Nintendo lost 0.44 per cent to ¥47,660 while Toyota firmed 0.36 per cent to ¥6,800 after the auto giant announced a recovery in domestic production for August. ― AFP
