Tokyo shares open lower after Wall Street sell-off
A man looks at the electronic stock board in Tokyo. AP file photo dated Aug. 7, 2013. AP
TOKYO – Tokyo shares opened 1.39 percent lower on Friday following a fall in US stocks after disappointing earnings results and outlooks.
The Nikkei index at the Tokyo Stock Exchange lost 191.84 points to 13,561.10 in the first minutes of trading.
US shares suffered as Cisco and Walmart spotlighted the weak economic outlook in their earnings reports.
At the same time, a strong improvement in weekly unemployment insurance claims suggested a tightening of the jobs market, adding to expectations that the Federal Reserve will begin tapering its bond-buying stimulus program soon.
The Dow Jones Industrial Average dropped 225.47 points (1.47 percent) to 15,112.19.
The broad-based S&P 500 gave up 24.07 points (1.43 percent) at 1,661.32, while the tech-rich Nasdaq Composite Index lost 63.16 points (1.72 percent) at 3,606.12.
“The jobs data was a shock to the market, and put the whole tapering issue back on the front burner again,” said Hiroichi Nishi, SMBC Nikko Securities general manager of equities.
Many traders stayed away from the market for summer vacation this week.
“In these thinly traded markets, the initial sell-off is likely to be sharp before things stabilize,” Nishi told Dow Jones Newswires.
The dollar stood at 97.24 yen, little changed from 97.36 in New York Thursday.
The euro was at $1.3347 and 129.80 yen, nearly flat from $1.3346 and 129.96.
