Tokyo shares lower on Wall Street losses, higher Yen

The Dow fell 0.8 per cent, the S&P slipped 0.3 per cent while the Nasdaq added 0.6 per cent

AFP, Tokyo,

Oct 28 2020, 11:59 ist
updated: Oct 28 2020, 11:59 ist

A man pushing a cart looks at an electronic quotation board displaying share prices of the Tokyo Stock Exchange in Tokyo. Credit: AFP Photo

Tokyo stocks opened lower on Wednesday following losses on Wall Street, with the yen's appreciation also weighing on the market.

The benchmark Nikkei 225 index fell 0.47 per cent, or 111.52 points, to 23,374.28 in early trade while the broader Topix index gave up 0.68 per cent, or 10.92 points, to 1,606.61.

The soft start on the Tokyo bourse came after investors continued to sell US shares on lingering worries that the continued spread of the coronavirus may result in renewed lockdowns.

"Tokyo shares are expected to turn soft today," said Okasan Online Securities in a note to clients.

"US shares were so-so, and the dollar's continued weakness and the yen's appreciation will likely weigh on the market," it said.

The Dow fell 0.8 per cent, the S&P slipped 0.3 per cent while the Nasdaq added 0.6 per cent as hopes fade for a political deal over an eagerly anticipated fresh stimulus.

The dollar stood at 104.53 yen compared with 104.41 yen in New York and 104.69 yen seen in Tokyo Tuesday.

A lack of fresh news in Tokyo was discouraging investors from engaging in active trading, SBI Securities said in a note.

Okasan also added that investors' general appetite for bargains has remained strong at the current range.

"When you look at individual shares, you see lots of activity with the earnings season in full swing," Okasan said.

Among major shares, ANA Holdings fell 1.48 per cent to 2,256 yen after it reported eye-watering losses for the fiscal first half and predicted a record annual loss of $4.87 billion as travel demand dried up due to the pandemic.

Toyota fell 1.09 per cent to 6,885 yen. Nissan gave up 1.74 per cent to 378 yen.

Mitsubishi UFJ Financial Group fell 1.34 per cent to 413.8 yen. Nippon Steel lost 2.01 per cent to 1,049 yen.

Construction equipment maker Komatsu fell 3.29 per cent to 2,394 yen.

But Sony, which releases earnings later Wednesday, added 1.07 per cent to 8,187. Nintendo rose 1.40 per cent to 57,830 yen and chipmaker Murata Manufacturing added 0.45 per cent to 7,401 yen.

SoftBank Group added 0.52 per cent to 6,947 yen.