Tokyo Stocks Open Lower After US Falls

Tokyo stocks opened lower on Tuesday following falls on Wall Street, as investors awaited an earnings report from Toyota due later in the day

Tokyo, (UrduPoint / Pakistan Point News - 6th Feb, 2024) Tokyo stocks opened lower on Tuesday following falls on Wall Street, as investors awaited an earnings report from Toyota due later in the day.

The benchmark Nikkei 225 index lost 0.22 percent, or 80.03 points, to 36,274.13 in early trade, while the broader Topix index slipped 0.37 percent, or 9.36 points, to 2,547.35.

US shares dropped, with investors now believing the Federal Reserve may not cut rates as swiftly as previously hoped.

It came after Fed chair Jerome Powell said in an interview that the central bank wants to see more data before starting to cut interest rates.

The dollar stood at 148.61 yen, nearly flat from 148.68 yen in New York.

"The Tokyo market is expected to start softer following falls in US shares," brokerage house Monex said.

"The market is focused on Toyota's earnings," to be issued at 1:25 pm (0425 GMT), it added.

Analysts expect the auto giant's net profit to jump a whopping 93 percent for the April-December period, the Nikkei newspaper said.

The influential business paper added that Toyota has in the past routinely done better than the market's expectations.

Some analysts, however, pointed out that recent revelations about misconduct by Toyota subsidiaries may drive the automaker to maintain its forecasts.

In early trade, Toyota traded down 0.37 percent at 2,981 yen.

Uniqlo operator Fast Retailing fell 0.79 percent to 38,790 yen. Sony Group dropped 1.69 percent to 14,230 yen.

Semiconductor firms gained. Tokyo Electron rose 1.29 percent to 28,570 yen, and Advantest added 1.45 percent to 6,077 yen.