Tokyo stocks open lower extending falls in US

Tokyo stocks open lower extending falls in US
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Tokyo: Tokyo stocks opened lower Thursday, with the yen edging up on trade worries, after the US Federal Reserve lifted rates and signalled a more aggressive pace for additional hikes.

The benchmark Nikkei 225 index fell 0.62 percent or 141.90 points to 22,824.48 in early trade while the broader Topix index was down 0.60 percent or 10.86 points at 1,789.51.

The dollar edged lower in Asian trade, quoted at 110.19 yen against 110.38 yen in New York late Wednesday.

“The latest US rate hike has already been factored in by the market which had sent the dollar higher against the yen since May, supporting Japanese shares,” Masayuki Kubota, chief strategist at Rakuten Securities, said in a commentary.

“As the dollar is not really appreciating despite the rate hike, the Nikkei 225 is seen falling” on Thursday, he said.

Banks were lower with Mitsubishi UFJ dropping 1.84 percent to 664 yen and Sumitomo Mitsui Financial down 1.06 percent at 192 yen.

Pharmaceuticals were among losers, with Takeda declining 0.91 percent to 4,327 yen and Daiichi Sankyo down 0.92 percent at 3,846 yen.

Sony was down 0.81 percent at 5,456 yen while Toyota was down 0.68 percent at 7,445 yen.

Wall Street stocks finished lower, with the Dow closing down 0.5 percent at 25,201.20.

AFP