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Tokyo stocks open lower as yen rises
TOKYO, Oct 9, 2018 (BSS/AFP) – Tokyo stocks opened lower on Tuesday,
dragged down by a higher yen and worries over China.
The benchmark Nikkei 225 index, which fell for three straight days to
Friday before a long weekend, lost another 0.98 percent or 232.01 points to
23,551.71 in early trade while the broader Topix index was down 0.85 percent
or 15.26 points at 1,777.39.
“Export stocks will come under selling pressure as the yen’s appreciation
prompts caution,” SBI Securities said in a commentary.
A strong yen is negative for Japanese exporters as it erodes their profit
earned overseas when repatriated.
The dollar was trading at 113.03 yen, down from 113.16 yen in New York
Monday afternoon and near 114 yen before Tokyo markets closed Friday for the
three-day weekend.
Chinese stocks tumbled on Monday as investors returned to a rash of
negative news that had accumulated over a week-long holiday, from
disappointing economic data to worsening tensions with the United States.
Italy’s budget also remains a concern in Europe and US technology shares
endured another sharp decline for a third day in a row, noted Rodrigo Catril,
senior foreign exchange strategist at National Australia Bank.
The Japanese yen “has been the main beneficiary from the risk-off tone”, he
said in a client note.
In individual stocks trade, Toyota fell 2.54 percent to 6,824 yen and IT
investor SoftBank Group lost 2.25 percent to 10,825 yen.
BSS/AFP/MR/ 1044 hrs