03 Aug 2021, 13:17

Tokyo shares open lower as US manufacturing growth slows

 TOKYO, Aug 3, 2021 (BSS/AFP) - Tokyo shares opened lower on Tuesday after Wall Street ended mostly down on the latest disappointing manufacturing sector data.

The Nikkei 225 index dipped 0.71 percent, or 195.98 points, to 27,585.04, while the broader Topic index dropped 0.61 percent, or 11.89 points, to 1,928.16.

The Tokyo market has come under pressure on rising worries about the general economic outlook, with fresh indicators showing that growth in US manufacturing industry is moving at a slower speed than expected.

It prompted global investors to turn more cautious, sending the Dow down 0.3 percent, although the Nasdaq managed to edge up 0.1 percent.

"US equity markets have begun the new week in a tentative manner with a nervous feeling in the air," said Rodrigo Catril, senior FX strategist at National Australia Bank.

Selling in Tokyo came after the Nikkei jumped 1.8 percent on Monday despite a broader downward trend.

"The market has been gradually lowering its ranges," Okasan Online Securities said in a note to clients.

"It appears that supply-and-demand conditions have worsened. Even if a rebound were to take place, sellers are likely to quickly step in," Okasan said.

"For the major indices, it is likely to continue to be a time for patience," Okasan added.

Among major Japanese firms that are scheduled to announce their earnings later in the day, Japan Airlines fell 1.59 percent to 2,228 yen. Nippon Steel also gave up 1.30 percent to 1,970.5 yen.

Among other firms, Sony Group fell 0.87 percent to 11,450 yen. Uniqlo operator Fast Retailing fell 1.02 percent to 73,040.

Investment giant SoftBank Group gave up earlier losses and rose 0.22 percent to 6,977 yen.


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