TOKYO: Tokyo stocks opened lower on Friday, extending falls on Wall Street as United States inflation data renewed concerns over higher interest rates.
The benchmark Nikkei 225 index was down 0.48%, or 155.76 points, to 32,338.90 in early trade, while the broader Topix index was down 0.81%, or 19.06 points, at 2,323.43.
Market analyst for Tokai Tokyo Research Institute Yuta Okamoto said that Japanese shares are opening with losses, weighed down by Wall Street falls and profit-taking in Tokyo after three days of rallies.
Overnight in New York, the Dow Jones Industrial Average closed down 0.5% at 33,631.14, while the broad-based S&P 500 fell 0.6% and the tech-rich Nasdaq Composite Index slipped 0.6%.
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Stephen Innes, managing partner of SPI Asset Management, said that the latest US consumer price index figure — a 3.7% rise in September — implied that markets might have been too quick to dismiss the possibility of a November rate hike after this week’s dovish statements by Federal Reserve officials.
Okamoto of Tokai Tokyo said that traders’ focus is now focusing on Japan’s CPI for September due next Friday, which could affect the Bank of Japan’s (BOJ) policy decision, and the Fed’s Beige Book economy report on Wednesday.
Other stocks
Among major shares, Uniqlo operator Fast Retailing was up 4.74% at 35,350 yen, after saying it is likely to improve its earnings on the back of record annual profits.
Astellas Pharma was down 2.84% at 1,983 yen, Nintendo was off 2.82% at 6,171 yen, and real estate firm Mitsui Fudosan was down 2.36% at 3,351 yen.
Toyota was off 1.51% at 2,698.5 yen, while Sony Group was down 0.72% at 13,010 yen.
