TOKYO: Tokyo shares opened higher Tuesday following gains on Wall Street led by tech giants, but soon receded on profit-taking, with investors cautious over uncertainties linked to Ukraine.
The benchmark Nikkei 225 index initially climbed at the open, but dipped 0.11 percent, or 31.91 points, to 27,705.28 in early trade.
The broader Topix index fell 0.26 percent, or 5.08 points, to 1,948.55.
Mizuho Securities said in a note that “buying was likely to dominate today, with equities, particularly high-tech stocks, expected to be buoyed by the rise in the Nasdaq index.”
In New York, the tech-rich Nasdaq Composite Index jumped 1.9 percent, with Amazon, Apple and Google-parent Alphabet all advancing more than two percent.
Twitter surged 27.1 percent after Tesla chief Elon Musk disclosed he took a 9.2 percent stake in the social media company.
But with the Ukraine situation still uncertain, traders were cautious.
Japanese Foreign Minister Yoshimasa Hayashi on Monday condemned the “exceptionally cruel” violence against civilians near Kyiv in an apparent reference to killings in the town of Bucha.
The dollar traded at 122.82 yen against 122.78 yen in New York on Monday.
The Tokyo market was weighed down by shipping companies, with Nippon Yusen dropping 2.33 percent to 10,060 yen and Mitsui OSK Lines plummeting 3.28 percent to 3,240 yen.
Tech-related shares were higher but trimmed gains, with Tokyo Electron, a major producer of tools to build semiconductors, adding 0.24 percent to 60,190 yen.
Chip-testing equipment maker Advantest was up 0.21 percent to 9,400 yen while industrial robot maker Fanuc rose 0.36 percent to 21,945 yen.
SoftBank Group jumped 1.62 percent to 5,879 yen after Alibaba jumped in New York. SoftBank Group is a major shareholder of the Chinese e-commerce giant.
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