Tokyo Shares Open Down As Stronger Yen Hits Exporters

TOKYO, (UrduPoint / Pakistan Point News - 18th Augst,2016) - Tokyo shares slipped in early trade on Thursday as the Yen surged on fading expectations of an imminent rate hike by the Federal Reserve, pressuring exporters including Toyota and Nissan. Minutes from the July meeting of the US central bank said policymakers were keeping their "options open" and its cautious tone did little to raise hopes for a rise. In forex markets, the Dollar slumped to 99.70 yen from 100.28 yen Wednesday in New York. A rise in US borrowing costs would tend to lift the greenback by stirring demand for dollar-denominated assets. "The minutes struck a cautious note against any rushed rate hike decision, while continuing to support the idea of a moderated rate increase," Mitsushige Akino, an executive officer at Ichiyoshi Asset Management, told Bloomberg news. "The odds are for a December hike, rather than a September one, and the yen looks set to extend gains from here.

" In opening deals, the benchmark Nikkei 225 index slumped 0.57 percent, or 95.73 points, to 16,649.91, while the broader Topix index of all first-section shares lost 0.67 percent, or 8.84 points, to 1,302.29. The Japanese market came under further pressure after fresh data Thursday showed exports slipped in July as shipments of vehicles, ships and steel products fell. The figures served as the latest reminder of the impact of a sharp rally in the yen, which is denting Japanese firms' profits. In Tokyo share trading, Toyota slumped more than one percent in early deals, while rival Nissan was down nearly two percent. Energy explorer Inpex bucked the downtrend, jumping more than one percent. On Wall Street, the Dow edged up 0.1 percent, the broad-based S&P 500 gained 0.2 percent and the tech-rich Nasdaq ticked less than 0.1 percent higher.