Tokyo Stocks Open Lower After Mixed US Close

Mohammad Ali (@ChaudhryMAli88) Published November 24, 2021 | 08:40 AM

Tokyo, (UrduPoint / Pakistan Point News - 24th Nov, 2021 ) :Tokyo stocks opened lower on Wednesday after a mixed close on Wall Street, with investors sceptical about a US-led plan for a coordinated release by several countries of strategic oil reserves.

The benchmark Nikkei 225 index was down 0.33 percent, or 96.98 points, at 29,677.13 in early trade, while the broader Topix index was down 0.15 percent, or 3.12 points, at 2,039.70.

The markets were closed in Japan on Tuesday for a national holiday, and on Wednesday Tokyo investors were cautious after watching a slide in Eurozone stocks and US high-tech shares, Okasan Online Securities said in a note.

"A wait-and-see attitude could grow over worries about a surge in the yen" against the dollar, senior strategist Yoshihiro Ito of Okasan added.

But a cheaper Yen could work as a tailwind for exporters, others noted.

Japan is expected to announce Wednesday that it will release around 4.2 million barrels from its oil reserve as part of a coordinated plan led by the United States to tackle surging prices.

However, oil prices rallied overnight despite US President Joe Biden's announcement that Washington will release 50 million barrels of crude from strategic reserves.

The Dollar fetched 115.14 yen in early Asian trade, against 115.11 yen in New York late Tuesday. The greenback broke the 115 yen mark for the first time in more than four years on Tuesday.

In Tokyo, some exporters were higher with Toyota trading up 2.16 percent at 2,150.5 yen, Hitachi up 1.32 percent at 7,426 yen and Panasonic 0.51 percent higher at 1,387.5 yen.

Chip-linked shares were lower, weighed down by falls in the US tech-rich Nasdaq and after a report said the Japanese government plans to earmark 60 billion yen ($520 million) to establish a fund to support companies that produce cutting edge semiconductors.

Chip-maker Renesas Electronics was down 2.90 percent at 1,509 yen and chip-testing equipment maker Advantest dropped 3.99 percent to 10,110 yen.