Tokyo stocks open lower on US falls

Tokyo stocks open lower on US falls

The benchmark Nikkei 225 index was down 0.72 per cent, or 170.04 points, at 23,324.30 in early trade

Representative Image. Credit: Reuters Photo

Tokyo stocks opened lower on Tuesday following a rout on Wall Street due to fading hopes for the US economic stimulus and mounting worries over the coronavirus.

The benchmark Nikkei 225 index was down 0.72 per cent, or 170.04 points, at 23,324.30 in early trade, while the broader Topix index lost 0.98 per cent, or 15.93 points, to 1,603.05.

"The Japanese market is led by sell orders with investors discouraged by sharp falls in US shares," Okasan Online Securities chief strategist Yoshihiro Ito said in a commentary.

"With a record number of new infections on October 23 in the US, worries are growing among investors" prompting position-adjustment selling, he said.

However, shares with sound corporate earnings are seen supporting the downside, he added.

The dollar fetched 104.78 yen in early Asian trade, against 104.84 yen in New York late Monday.

In Tokyo, ANA Holdings was down 1.71 per cent at 2,324.5 yen ahead of its second-quarter earnings report and details on restructuring plans due after the market close.

Its rival JAL was down 2.14 per cent at 1,992.5 yen.

Nissan Motor was down 1.02 per cent at 387 yen despite reports it will boost production in China by 30 per cent next year.

Its rival Honda was down 1.35 per cent at 2,550 yen while Toyota was down 0.11 per cent at 6,982 yen.

On Wall Street, the Dow ended down 2.3 per cent at 27,685.38.