Tokyo stocks open lower on stronger yen
AFP
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File photo: AFP

Tokyo stocks opened lower on Wednesday after a sharp rise in the previous session, as a stronger yen against the dollar weighed on investor sentiment.

The benchmark Nikkei 225 index was down 0.80 percent or 157.49 points at 19,481.32 in early trade, while the broader Topix index lost 0.62 percent or 8.82 points to 1,424.69.

"In addition to reacting to the steep rally in the previous session, a cheaper yen against the dollar is prompting sales," said Toshiyuki Kanayama, senior market analyst at Monex.

The falls came despite gains on Wall Street where traders were heartened by an improving situation in some coronavirus hotspots.

The dollar fetched 107.10 yen in early Asian trade, against 107.21 in New York and 107.65 yen in Tokyo on Tuesday.

In Tokyo, Toyota was down 1.17 percent at 6,671 yen after a report said it would extend the temporary closure of factories in Brazil until June.

Sony was down 0.39 percent at 6,590 yen, chip-making equipment manufacturer Tokyo Electron dropped 0.60 percent to 22,520 yen, and Uniqlo casual wear operator Fast Retailing was off 0.80 percent at 48,400 yen.

The Dow Jones Industrial Average gained more than 550 points, or 2.4 percent, to 23,949.76.