Tokyo Stocks Open Lower After US Falls

Tokyo, (APP - UrduPoint / Pakistan Point News - 14th Feb, 2024) Tokyo stocks opened lower on Wednesday following falls on Wall Street after sticky US inflation data dampened hopes for quick interest-rate cuts by the Federal Reserve.

The benchmark Nikkei 225 index was down 0.78 percent, or 297.52 points, at 37,666.45 in early trade, while the broader Topix index slipped 0.78 percent, or 20.35 points, to 2,591.68.

"The Japanese market is expected to start with falls following falls in US shares," senior market analyst Toshiyuki Kanayama of Monex said, adding that a cheaper Yen against the Dollar could support the market.

Wall Street stocks tumbled overnight after US consumer inflation slowed less than expected in January.

The Dow Jones Industrial Average finished down 1.4 percent, the broad-based S&P 500 fell 1.4 percent and the tech-rich Nasdaq Composite Index dropped 1.8 percent.

The dollar fetched 150.

65 yen, slightly down from 150.80 yen in New York late Wednesday, as Japan's top Currency diplomat warned about recent "rapid" movement in exchange rates.

For comparison, one dollar bought 149.46 yen in Tokyo on Wednesday.

"In a month-long period since the start of this year, the yen has weakened by nearly 10 yen, and this kind of rapid movement is not good for the economy," finance ministry currency diplomat Masato Kanda said before the opening bell.

"We are closely watching the currency market with a sense of urgency, and will take appropriate measures if necessary," he told reporters.

Among major shares in Tokyo, Panasonic was down 3.30 percent at 1,390 yen, Nippon Steel was off 3.16 percent at 3,465 yen, and Mazda was down 2.93 percent at 1,724 yen.

SoftBank Group was down 2.93 percent at 1,724 yen after soaring 6.27 percent in the previous session.