TOKYO: Tokyo stocks opened lower Tuesday, tracking another Wall Street rout on stubborn fears over rising US interest rates and inflation, with investors eyeing earnings reports.
The benchmark Nikkei 225 index was down 0.69 percent, or 181.59 points, at 26,137.75 in early trade, while the broader Topix index dropped 0.91 percent, or 17.18 points, to 1,861.21.
“Japanese shares are seen weighed down by worries over US monetary tightening and over a slowing Chinese economy,” Mizuho Securities said in a note.
Investors are closely watching corporate earnings reports, including Japan Steel, game giant Nintendo, and trading house Itochu, due later in the day, it added.
On Wall Street, the Nasdaq tumbled more than four percent as US equities endured another battering amid worries over inflation, rising interest rates and a slowing economy.
Tokyo stocks open lower on rate worries
All three major US indices were pummelled, with the Dow falling two percent, the broad-based S&P 500 sliding 3.2 percent and the tech-rich Nasdaq Composite Index dropping 4.3 percent.
The latest round of weakness in global stocks was sparked by last week’s US Federal Reserve meeting when policymakers announced the biggest interest rate hike since 2000 and signalled more aggressive tightening ahead.
Markets are also edgy over supply chain problems due to China’s Covid-19 lockdowns and the upheaval from the Russian invasion of Ukraine.
In Asia, the dollar changed hands at 129.99 yen, against 130.26 yen in New York late Monday.
Among major shares in Tokyo, Nintendo was down 0.36 percent at 56,020 yen, Nippon Steel was off 1.98 percent at 1,931.5 yen, and Sony was down 5.03 percent at 10,295 yen, ahead of their full-year earnings reports due after the market close.
Trading house Itochu dropped 4.44 percent to 3,705 yen ahead of its earnings report to be released during trading hours, and Mitsubishi Motors was off 2.65 percent at 331 yen ahead of its earnings reports due in after hours.
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