TOKYO: Tokyo shares opened almost flat on Wednesday as investors weighed positive US economic data against worries over the European debt crisis.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange opened up 4.82 points or 0.06 percent at 8,546.75.
Stocks may struggle to find direction, as some steady US economic indicators provide support while continuing European debt woes weigh, said Yoshihiro Okumura, general manager at Chibagin Asset Management.
"The Nikkei is unlikely to fall sharply as some US economic indicators are pointing to a recovery, but the yen remains firm, posing risk to (Japanese) firms," he told Dow Jones Newswires.
Okumura added "not much progress is seen in Italy though the situation eased somewhat with the new leader assuming his role."
Italian prime minister designate Mario Monti vowed to unveil a new government Wednesday to tackle the debt crisis, as bond rates hit dangerous highs.
He was scheduled to meet President Giorgio Napolitano at 1000 GMT before being officially sworn in.
In New York on Tuesday, the Dow Jones Industrial Average eked out a gain of 0.14 percent to close at 12,096.16 on positive data.
US figures released Tuesday showed that retail sales continued to rise in October, helped by a jump in electronics and appliances, while inflation was muted at the wholesale level.
A key manufacturing index for New York also surged to its first positive reading in six months in November, suggesting an upturn in business conditions.
The euro fetched $1.3509 and 104.14 yen in early Asian trade, down from $1.3536 and 104.31 in New York late Tuesday. The dollar was almost unchanged, trading at 77.05 yen.
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