Tokyo stocks open down 0.21%
TOKYO – Tokyo stocks opened 0.21 percent lower on Monday on a strong yen and profit-taking, after weak US jobs figures Friday led to hopes of fresh monetary easing by the US Federal Reserve, brokers said.
The Nikkei 225 index at the Tokyo Stock Exchange fell 18.46 points to 8,853.19.
“Weaker-than-expected US jobs numbers in August stoked expectations for a third round of quantitative easing” by the Federal Reserve, Hiroichi Nishi, equity analyst at SMBC Nikko Securities, told Dow Jones Newswires.
The Nikkei may struggle for direction as selling due to a weaker dollar against the yen and profit-taking will likely offset buying into risky assets amid expectations for further easing measures, he said.
He added: “There will likely be some profit-taking on the topside after the Nikkei gained late last week.”
On Friday, US stock markets turned a weak jobs report into positive news, ending higher on expectations that the numbers will lead to new Federal Reserve efforts to help the economy.
The Dow Jones Industrial Average closed up 0.11 percent at 13,306.64.
The Fed’s policy-setting Federal Open Market Committee opens a two-day meeting Wednesday with several options to support the economy, including a third round of quantitative easing (QE) bond purchases.
The dollar was quoted at 78.21 yen, unchanged from the level in New York late Friday.
The euro was at $1.2791 and 100.04 yen, against $1.2811 and 100.21 yen.
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