Tokyo stocks open lower on concern over US tax plan

TOKYO: Tokyo stocks opened lower on Monday after Wall Street snapped a two-month winning streak last week due to fears of a delay in US corporate tax cuts.

The benchmark Nikkei 225 index fell 0.35 percent, or 79.63 points, to 22,601.79 in early trade while the broader Topix index was down 0.16 percent, or 2.92 points, to 1,797.53.

US Senate Republicans last week released a tax plan that would put off promised steep corporate tax cuts for a year.

Fears over the possible delay sent the Dow lower on Friday, ending eight weeks of gains that had been fuelled by robust company earnings.

The Tokyo market was hit by "uncertainty over the US tax reform," said Toshihiko Matsuno, chief strategist at SMBC Friend Securities.

"Also except for major banks, the earnings season is almost over, which means most positive news is out now," Matsuno told AFP.

There is also a sense of "achievement" after the Nikkei hit a quarter-century high, he said.

The dollar edged up to 113.63 yen early Monday from 113.50 yen in New York Friday afternoon.

SoftBank fell 0.92 percent to 9,615 yen after reports the Japanese mobile operator will take a big stake in ride-sharing company Uber in a deal that could reach up to $10 billion.

Major banks were lower with Mizuho down 0.34 percent at 202.3 yen before it announces April-September earnings later Monday.