Tokyo Stocks Open Lower

Tokyo stocks opened lower Wednesday after a mixed close on Wall Street as investors weighed the risk of a US debt default

Tokyo, (UrduPoint / Pakistan Point News - 31st May, 2023 ):Tokyo stocks opened lower Wednesday after a mixed close on Wall Street as investors weighed the risk of a US debt default.

The benchmark Nikkei index slipped 0.94 percent, or 294.11 points, to 31,034.05, in early trade, while the broader Topix index fell 0.81 percent, or 17.54 points, to 2,141.68.

"Japanese shares are seen starting with losses after a narrowly mixed close in the US market that failed to give clues for trade, while the yen is firmer against the dollar," Monex senior market analyst Toshiyuki Kanayama said in a note.

A stronger yen generally weighs on the Japanese market as it diminishes the value of export-oriented firms' repatriated profits and erodes their price competitiveness in foreign markets.

Traders are closely watching China's PMI indexes of manufactures and non-manufacturers due later in the day, Kanayama added.

Overnight on Wall Street, the S&P 500 finished flat, with the Dow narrowly negative and the Nasdaq modestly higher.

The dollar fetched 139.84 yen in early Asian trade, against 139.80 yen in New York where the greenback slipped from 140.41 yen in Tokyo late hours Monday.

The yen firmed against the dollar "following comments/warnings from Japan's top currency official Masato Kanda that 'It's important that currency markets reflect fundamentals and move in a stable manner,'" said National Australia Bank strategist Rodrigo Catril in a commentary.

In Tokyo, Sony Group fell 1.68 percent to 13,130 yen, Toyota slipped 1.16 percent to 1,917.5 yen, and SoftBank Group was down 0.44 percent at 5,486 yen.