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Tokyo stocks open lower extending US falls

Wall Street stocks retreated from records while the dollar rallied after data showed the biggest jump in US inflation in more than a decade
Last Updated 14 July 2021, 02:44 IST

Tokyo stocks opened lower on Wednesday after falls on Wall Street, as investors weighed how a jump in US inflation data would affect monetary policy.

The benchmark Nikkei 225 index was down 0.74 per cent, or 211.64 points, at 28,506.60 in early trade, while the broader Topix index slipped 0.54 per cent, or 10.63 points, to 1,957.01.

"Japanese shares are seen starting with losses after falls in US shares, with focus being whether the Nikkei 225 would rebound above the (psychologically important) 28,500 mark," senior market analyst Toshiyuki Kanayama of Monex said in a commentary.

Wall Street stocks retreated from records while the dollar rallied after data showed the biggest jump in US inflation in more than a decade.

The US consumer price index (CPI) spiked 5.4 per cent in the 12 months ended in June, not seasonally adjusted, the highest rate since August 2008, the Labor Department said.

The dollar fetched 110.67 yen in early Asian trade, against 110.62 yen in New York late Tuesday.

"The key question for the Fed and markets in general is whether the sustained lift in inflation seen over the past couple of months is still likely to be transitory, or will it be more persistent, warranting an earlier normalisation in Fed policy," senior economist Tapas Strickland of National Australia Bank said in a note.

Among major shares in Tokyo, Sony was down 0.20 per cent at 11,535 yen and Hitachi was off 1.23 per cent at 6,742 yen.

Auto giant Toyota rose 1.13 per cent to 9,976 yen and SoftBank Group was up 0.62 per cent at 7,682 yen.

Astellas Pharma was up 0.6 per cent after a report said the pharmaceutical firm plans to spend $100 million on a US plant for gene therapies.

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(Published 14 July 2021, 02:44 IST)

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