TOKYO- Tokyo stocks were down 0.60 percent in early trade on Friday as investors mulled the impact of China’s interest rate cut and after US Federal Reserve Chairman Ben Bernanke dented stimulus hopes.
The Nikkei 225 index of the Tokyo Stock Exchange shed 51.84 points to 8,587.88.
Overnight Thursday, US Fed Chairman Bernanke, in testimony to Congress, was fairly upbeat about “moderate” growth and gave no hint of fresh stimulus.
“Chairman Bernanke’s testimony to the Senate was balanced, disappointing those who were looking for a clear signal” that a US economic recovery was on its way, Barclays Capital said in a note to clients.
An upward revision in Japan’s January-March GDP and a weaker-than-expected trade surplus for April did not give investors much cheer.
“The index is unsteady with lack of supportive catalysts to invite buying,” said Daiwa Securities head of investment strategy and research Kazuhiro Takahashi.
But despite the lack of a signal from Bernanke indicating more stimulus, the Nikkei may rise after China lowered its benchmark interest rate for the first time since 2008, although gains may be limited, said Tachibana Securities operating officer Kenichi Hirano.
“It’s not going to be a bad day as there is a heap of trading cues,” Hirano said, adding a weaker yen is likely to provide support.
The euro fetched $1.2552 and 100.05 yen in early Asian trade, compared with $1.2561 and 100.01 yen late Thursday in New York where the common currency rose on hopes of European Central Bank action to help quell Eurozone financial turmoil.
The dollar was at 79.70 yen against 79.58 yen.