Tokyo Shares Open Lower After Mixed US Trade

Tokyo, (UrduPoint / Pakistan Point News - 30th Jun, 2022 ) :Tokyo shares opened lower on Thursday after US stocks ended flat, with investors searching for new trading cues.

The benchmark Nikkei 225 index fell 0.19 percent, or 51.32 points, to 26,753.28 at the open, while the broader Topix index lost 0.34 percent, or 6.48 points, to 1,887.09.

"Trade is likely to move in a narrow range in Tokyo because US shares lacked direction on Wednesday, and the United States will release its personal consumption expenditure price index later," Mizuho Securities said.

The Dow Jones Industrial Average finished up 0.3 percent while the broad-based S&P 500 slipped 0.1 percent. The tech-rich Nasdaq index edged down less than 0.1 percent.

Global markets were weighed down after US Federal Reserve Chair Jerome Powell spoke at an ECB Forum panel.

While his speech "didn't send investors into panic mode, it didn't do much to reassure them either," said Craig Erlam, senior market analyst of OANDA.

"Central banks are clearly concerned about inflation and the economy, but ultimately, the former takes precedence." The Dollar fetched 136.62 Yen in early Asian trade, against 136.66 yen in New York on Wednesday.

Industrial robot maker Fanuc dropped 1.81 percent to 21,610 yen while Tokyo Electron, a major producer of tools to build semiconductors, tumbled 1.90 percent to 45,320 yen.

Automakers were lower, with Toyota losing 0.91 percent to 2,108.5 yen, Honda falling 0.92 percent to 3,319 yen and Nissan sinking 2.27 percent to 536.4 yen.

SoftBank Group rose 0.39 percent to 5,346 yen while Uniqlo operator Fast Retailing added 0.19 percent to 71,680 yen.

Separately, the Japanese government said factory output in May fell 7.2 percent from the previous month due to the impact of lockdowns in China.