TOKYO: Tokyo stocks opened down Thursday following falls on Wall Street as investors eyed inflation worries.
The benchmark Nikkei 225 index slipped 0.51 percent, or 140.57 points, to 27,317.32, while the broader Topix index dropped 0.81 percent, or 15.62 points, to 1,923.02.
The dollar stood at 129.93 yen, nearly flat from 130.15 yen seen Wednesday in New York.
Fresh data pointed to US economic strength, but the market reacted negatively amid lingering worries about inflation.
US yields rose, which also weighed on the global market as investors also braced themselves for further US tightening on solid US indicators.
“The move up in US (Treasury) yields rattled US equity markets with all major US equity indices heading south after the stronger-than-expected data releases,” Rodrigo Catril of National Australia Bank wrote in a note.
Japan’s Nikkei inches up amid caution on economic outlook
China’s easing of Covid lockdowns, while embraced by many investors, was seen as posing a possible risk of further increasing oil demand and prices.
Still, Okasan Online Securities said the market should avoid sharp falls as many players are feeling less worried about further market volatilities ahead, as reflected in indicators.
“We are continuing to see a swing back from earlier excessive pessimism,” Okasan said in a note. “The current general buyback trend of Japanese shares should continue.”
“At the same time the market turned wary when US long-term yields advanced overnight. Caution is warranted as (further US data) may reignite inflation worries,” the brokerage added.
Among major shares, Nintendo fell 1.57 percent to 57,500 yen. Mitsubishi UFJ Financial Group lost 0.89 percent to 739.0 yen. Toyota lost 0.32 percent to 2,190.5 yen.
SoftBank Group fell 0.15 percent to 5,292 yen. Sony Group lost 2.43 percent to 12,070 yen.
Meanwhile, Advantest added 0.45 percent to 8,960 yen. Fast Retailing rose 1.85 percent to 62,750 yen.
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