Tokyo Shares Open Lower Ahead Of US Inflation Data

Tokyo, (APP - UrduPoint / Pakistan Point News - 10th Apr, 2024) Tokyo stocks opened lower on Wednesday with investors expected to take a wait-and-see stance ahead of the release of US inflation data.

The benchmark Nikkei 225 index dropped 0.34 percent, or 133.84 points, to 39,639.29 while the broader Topix index slipped 0.31 percent, or 8.61 points, to 2,746.08.

"A strong wait-and-see mood should prevail in the market today as investors await the release of March US CPI later in the day," brokerage house Monex said.

"The Tokyo market was expected to be softer in early trade due to a dearth of fresh cues, and after New York shares ended mixed," it said.

Some Tokyo players were locking in profits after recent gains, analysts said.

Meanwhile global investors will analyse how the US inflation data will impact the speed and timing of Federal Reserve interest rate cuts.

"There's a palpable sense of nervousness among investors as they exercise a modicum of restraint, concerned about the possibility of hotter-than-expected inflation figures," Stephen Innes of SPI Asset Management said.

"Such data could spark intense speculation, potentially shifting market expectations towards a scenario where the Federal Reserve refrains from implementing rate cuts in 2024," he said.

"At the very least, it might dampen expectations regarding the magnitude of future rate cuts this year."

The Dollar stood at 151.72 yen, compared with 151.76 Yen in New York.

Toyota dropped 1.24 percent to 3,729 yen and Honda fell 1.27 percent to 1,861.5 yen. Fast Retailing lost 1.69 percent to 44,100 yen.

Some tech shares advanced after the US Nasdaq index marked a moderate gain. Tokyo Electron added 0.67 percent to 39,250 yen, but Advantest fell 0.46 percent to 6,003 yen while Nintendo slipped 0.49 percent to 7,843 yen.

Retail giant Seven and i Holdings fell 1.54 percent to 2,146.5 yen following media reports that it was considering selling some of its stake in its supermarkets such as national chain Ito Yokado. The company denied the reports.