Tokyo stocks open lower after losses in US, Europe
Men walk by an electronic stock board of a securities firm in Tokyo. AP PHOTO/EUGENE HOSHIKO
Tokyo stocks opened down more than one percent on Monday following sharp losses on financial markets in Europe and on Wall Street.
US investors dumped major technology stocks on Friday in a heavy sell-off spurred by fresh US jobs market data that could support another interest rate hike as soon as March by the Federal Reserve.
Tokyo investors may be pricing in another key US rate raise following the strong figures, which weighed on sentiment, analysts said. The Fed lifted rates for the first time in more than nine years in December.
“Investors surprised at the wage growth in the US may start with selling,” Shoji Hirakawa, chief equity strategist at Okasan Securities, told Bloomberg News.
“They’ll be pricing in” higher US interest rates, Hirakawa said.
Article continues after this advertisementThe benchmark Nikkei 225 index at the Tokyo Stock Exchange declined 1.18 percent, or 198.68 points, to 16,620.91 in opening deals, while the broader Topix index of all first-section shares dropped 1.26 percent, or 17.28 points, to 1,351.69.
Article continues after this advertisementThe last big week of Japan’s earnings season will be a key cue for Tokyo investors, with Nissan and mobile carrier SoftBank among the major firms set to announce quarterly earnings this week.
In US trade Friday, the Dow closed down 1.29 percent, while the S&P 500 fell 1.85 percent and the Nasdaq lost 3.25 percent. In Europe, London, Paris and Frankfurt also closed lower.
In forex markets, the dollar edged up to 117.00 yen from 116.86 yen Friday in New York.
The euro slipped to $1.1137 and 130.32 yen from $1.1158 and 130.40 yen in US trade. TVJ
