Tokyo Shares Lower On Wall St Losses, Higher Yen

Tokyo, (UrduPoint / Pakistan Point News - 28th Oct, 2020 ) :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 percent, or 111.52 points, to 23,374.28 in early trade while the broader Topix index gave up 0.68 percent, 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 percent, the S&P slipped 0.3 percent while the Nasdaq added 0.6 percent 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 percent 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 percent to 6,885 yen. Nissan gave up 1.74 percent to 378 yen.

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

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

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

SoftBank Group added 0.52 percent to 6,947 yen.