Tokyo Shares Open Down, Yen Dips Further

Tokyo, (APP - UrduPoint / Pakistan Point News - 11th Apr, 2024) Tokyo stocks opened lower on Thursday after hotter-than-expected US inflation data drove down Wall Street shares, while the Yen briefly hit a 34-year low.

The benchmark Nikkei 225 index dropped 1.07 percent, or 425.06 points, to 39,156.75 in early trade while the broader Topix index gave up 0.60 percent, or 16.32 points, to 2,726.47.

The latest US inflation data dimmed hopes for early US rate cuts and caused investors to dump shares while strengthening the dollar.

"With the looming return of the US Dollar wrecking ball, Asian markets are poised to face significant downward pressure today," said Stephen Innes of SPI Asset Management.

The US dollar stood at 152.88 yen, after reaching 153.16 early Thursday in Tokyo -- a low for the yen last seen in 1990 -- compared with 152.96 yen in New York.

Japan's Currency authorities repeated that they were prepared to take action if necessary, hinting at a government intervention.

"Current currency movements are rapid, and we want to take appropriate action against excessive movement without ruling out any means," Masato Kanda, vice finance minister for international affairs, told reporters in Tokyo.

The Japanese government last staged an intervention in markets to prop up the value of the yen in October 2022.

Among major shares, Sony Group fell 1.12 percent to 12,815 yen and SoftBank Group was down 1.57 percent to 8,401 yen.

Tokyo Electron lost 1.27 percent to 38,790 yen. Fast Retailing, which announces its half-year results on Thursday, dropped 1.22 percent to 43,820 yen.

Toyota added 0.91 percent to 3,774 yen, but Nissan lost 1.93 percent to 584.4 yen.