/ AFP / Toru Yamanaka
TOKYO, Japan (AFP) — Tokyo stocks sank more than one percent Friday morning, tracking sharp losses in United States and European markets, with technology firms among the worst hit.
The benchmark Nikkei 225 fell 1.09 percent, or 219.42 points, to 20,000.88 by the break, while the Topix index of all first-section issues was down 0.88 percent, or 14.29 points, at 1,609.78.
“There’s been profit-taking in certain tech shares, which have rallied recently,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.
“Declines in New York are driving the profit-taking.”
US and European stocks tumbled Thursday following hawkish commentary from central banks signalling an end to the loose monetary policy put in place to drag the world economy out of the financial crisis.
Before the opening bell Friday, government data showed Japanese inflation rose again in May but it remains way off the central bank’s target while household spending was also weak.
The dollar changed hands at 111.76 yen, down from 112.11 yen in New York and 112.26 yen in Tokyo earlier Thursday.
A stronger yen is negative for Tokyo stocks as it erodes exporters’ profits when repatriated.
Among tech firms, Nintendo dropped 3.04 percent to 37,600 yen while Sony fell 2.22 percent to 4,268 yen and Panasonic was down 1.77 percent at 1,524 yen.
Toyota was off 0.50 percent at 5,880 yen while Honda declined 1.03 percent to 3,052 yen.
But mega bank Mitsubishi UFJ edged up 0.01 percent to 755.3 yen while Sumitomo Mitsui rose 0.20 percent to 4,375 yen.
© Agence France-Presse
