BUSINESS Tokyo stocks open lower as yen rises

BUSINESS

Tokyo stocks open lower as yen rises

AFP

08:53, August 05, 2019

Tokyo stocks opened lower on Monday, weighed down by a strong yen and continued drops in US shares amid US-China trade tensions.

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Pedestrians are reflected on an electronics stock indicator at the window of a security company in Tokyo on August 2, 2019. (Photo: AFP)

The benchmark Nikkei 225 index lost 0.72 percent or 151.14 points to 20,936.02 in early trade while the broader Topix index was down 0.82 percent or 12.52 points at 1,520.94.

"Japanese stocks will likely be weighed down by the continued drops in US stocks and the yen's rise into the 106 range" against the dollar, Okasan Online Securities chief strategist Yoshihiro Ito said in a note.

The greenback was trading at 106.33 yen early Monday, down from 106.59 yen in New York on Friday afternoon and rates above 108.00 yen seen a week earlier.

A strong yen is a negative for Japanese exporters as it makes their products less competitive abroad and also erodes profits when repatriated. 

News that demand for US exports had weakened underscored concern that trade was becoming a trouble spot for economies worldwide.

On Wall Street Friday, all three major indices sank to their lowest levels since June.

In individual stocks trade in Tokyo on Monday, Toyota fell 0.92 percent to 6,865 yen while Sony fell 1.83 percent to 5,831 yen.

Nintendo was down 1.98 percent at 39,490 yen.

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