Tokyo stocks down at break oil price fall hits energy firms
TOKYO: Tokyo shares eased Wednesday morning as a slip in oil prices dragged energy firms lower while automaker Toyota and some of Japan's biggest banks also slipped into negative territory.
The weak start followed losses on Wall Street and European markets, with tepid US inflation and consumer confidence data hurting sentiment.
"The global economy isn't bad but there's no impression that it'll get markedly better from here, and I expect it to remain fairly flat," Mitsushige Akino, an executive officer at Ichiyoshi Investment Management, told Bloomberg News.
Tokyo's benchmark Nikkei 225 index slipped 0.09 percent, or 17.22 points, to 19,660.63 by the lunch break, while the Topix index of all first-section shares fell 0.22 percent, or 3.43 points, to sit at 1,569.24.
The Nikkei pared some of its early losses after forecast-beating Chinese factory data lifted hopes for a major trading partner with Japan.
Overnight, European markets slid as Italy nears a deal for early elections and a fresh game of chicken over Greece's bailout keeps investors on edge.
The political uncertainty in Washington, amid mounting questions over the Trump team's contacts with Russia, is also a key concern for markets.
"Investors are hoping to see (more) US data and see how US political developments will play out," Okasan Online Securities said in a commentary.
In share trading, another fall in oil prices hit energy explorer Inpex which fell 2.14 percent to 997.6 yen while refiner JXTG Holdings dropped 1.73 percent to 482.7 yen
Toyota edged down 0.18 percent to 5,970 yen, bank Mitsubishi UFJ Financial Group was down 1.04 percent to trade at 689.2 yen and rival lender Sumitomo Mitsui Financial fell 1.18 percent to 4,000 yen.
Uniqlo operator Fast Retailing, a market heavyweight, rebounded 0.21 percent to 37,050 yen, while Sony rose 0.42 percent to 4,048 yen.
In forex trading, the dollar strengthened to 111.15 yen against 110.76 yen in New York.
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