TOKYO, June 6 — Tokyo stocks opened lower today after US shares fell last week and with investors locking in profits.
The benchmark Nikkei 225 index lost 0.51 per cent, or 142.41 points, to 27,619.16 in early trade, while the broader Topix index gave up 0.37 per cent, or 7.22 points, to 1,925.92.
The Tokyo market came under pressure as global investors interpreted solid US economic data as a further sign the Federal Reserve will keep raising interest rates in its fight against inflation, driving down Wall Street shares.
Further gains of US yields also discouraged investors.
“Markets took the strong US payroll gains on Friday as affirming the near-term path for continued Fed tightening,” Taylor Nugent of National Australia Bank wrote in a note.
“Good news was bad news, then, for risk assets with US equities lower,” the note said.
The Nikkei index was also under pressure due to investors looking to lock in profits after recent gains.
After selling in the early part of this week, the Tokyo market is likely to regain calm, Okasan Online Securities said in a note.
“There seems to be an appetite for dip buying, which should provide support for the market,” the brokerage said, expressing optimism that the Nikkei may head toward 28,000.
Among major shares, Sony Group dropped 1.80 per cent to ¥11,980 (RM402.84). SoftBank Group fell 1.27 per cent to ¥5,349. Toyota fell 1.15 per cent to ¥2,140.0. Mitsubishi UFJ Financial Group slipped 0.43 per cent to ¥736.5.
But Uniqlo-operator Fast Retailing added 0.66 per cent to ¥67,290. Nintendo was up 0.19 per cent to ¥57,500. Leading shipping firm Nippon Yusen gained 0.65 per cent to ¥10,910.
Energy firm ENEOS Holdings added 3.25 per cent to ¥553.4, and Canon rose 0.82 per cent to ¥3,323. — AFP
