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Tokyo shares open lower after Wall Street fall
TOKYO, May 11, 2021 (BSS/AFP) – Tokyo stocks opened lower on Tuesday following falls on Wall Street where high-tech shares were hit hard.
About an hour into trade, the benchmark Nikkei 225 index was at 28,863.87 yen, down 654.47 points or 2.22 percent. The broader Topix was down 1.68 percent or 32.85 points at 1,919.42.
“Japanese shares, particularly blue-chip issues, are facing pressure as US shares drifted lower overnight,” Okasan Online Securities said in a note.
The Nikkei “is heading toward a possible first fall” after three straight winning sessions, the brokerage said.
In New York, the Dow gave up early gains and ended down 0.1 percent, while the tech-rich Nasdaq slipped 2.6 percent.
The dollar stood at 108.91 yen in Tokyo, just above the 108.77 yen in New York.
Investors dumped shares as they awaited further data including retail sales and inflation figures that may shape the market’s expectations for US monetary policy.
Hopes are fading that the Federal Reserve will explore ways for an early exit from the current easy money policy after disappointing April US jobs report, Okasan said.
“Investors want to see (more data this week) to further gauge the speed of the recovery,” it added.
In morning Tokyo trade, high-tech shares headed south.
Major chipmaker Murata Manufacturing fell 2.66 percent to 8,468 yen. Tokyo Electron, a major producer of tools to build semiconductors, dropped 3.22 percent to 48,450 yen.
Industrial robot maker Fanuc gave up 2.29 percent to 25,970 yen.
Internet investor SoftBank Group plunged 3.78 percent to 9,786 yen.
Toyota slipped 1.43 percent to 8,384 yen. Sony Group fell 1.76 percent to 10,590 yen. Uniqlo operator Fast Retailing lost 0.70 percent to 87,050 yen.
Nissan, which will release its annual earnings later in the day, surged briefly before falling back and was drifting down 0.69 percent to 578.4 yen in mid-morning trade.
Japan’s top drugmaker Takeda Pharmaceutical also gave up earlier gains and hovered at Monday’s close of 3,730 yen.
The company conducted the trial in Japan for Moderna’s coronavirus vaccine and submitted its results to the government Monday, confirming the jab’s effectiveness.
The government, which has so far only approved the Pfizer jab, wants to approve the Moderna vaccine this month to boost its inoculation efforts.
Japanese drugmaker Shionogi gave up earlier gains and fell 0.28 percent to 5,781 yen after its president reportedly said it expects to provide a coronavirus vaccine within the year.
It would be the first domestically produced vaccine in Japan.
BSS/AFP/MSY/0844 hrs