Tokyo shares open 0.46 percent lower

TOKYO – Tokyo shares opened 0.46 percent lower on Monday after fresh concerns about eurozone financial stability emerged, with the euro falling against other major currencies.

The Nikkei-225 index opened down 44.79 points at 9,633.92.

“This is not a problem of Greece alone so there are growing (debt) concerns about the other bigger euro economies,” Hiroichi Nishi, general manager at SMBC Nikko Securities, told Dow Jones Newswires.

On Friday, US shares tumbled after Italian bank stocks fell suddenly on warnings of a possible downgrade by ratings agency Moody’s and yields on Italian government bonds surged, sparking fear that the eurozone’s debt troubles could be spreading.

Underscoring the concerns about Italy’s fiscal weakness, the spread between Italian and German 10-year bonds hit 212 basis points — their highest level since the creation of the euro.

The fresh jitters from Italy, combined with ongoing worries about whether Greece can avoid a potentially destabilising default, overshadowed upbeat economic reports from the United States.

In early Tokyo trade, the euro tumbled to $1.4143 and 113.92 yen, from $1.4262 and 114.15 yen in New York late Friday.

Nishi also said Tokyo shares could face profit-taking after the Nikkei index gained 3.5 percent last week.

Investors are looking ahead to US economic data, including personal income and consumption numbers due later Monday, as well as the Bank of Japan’s quarterly “tankan” business sentiment survey slated to be released on Friday.

Against the Japanese currency, the dollar firmed to 80.58 from 80.34 yen.

The Dow Jones Industrial Average tumbled 115.42 points (0.96 percent) to close at 11,934.58 on Friday.