Tokyo stocks open lower in early trade
TOKYO – Japanese stocks opened lower Monday after France and other European nations saw their credit ratings downgraded last week.
The Nikkei index at the Tokyo Stock Exchange fell 1.23 percent or 104.74 points to 8,395.28 in the first minutes of trade.
The index stabilised after the opening tumble, said Tachibana Securities operating officer Kenichi Hirano.
Global markets are expected to face pressure when they reopen Monday after Standard & Poor’s stripped France and Austria of their top triple-A ratings and downgraded a swathe of debt-laden EU members.
Friday’s downgrades had been mostly anticipated, but analysts said the move showed the eurozone debt crisis was worsening.
Only Germany escaped unscathed as all other eurozone members were either downgraded — some by two notches — or else warned their current ratings were being re-examined.
