TOKYO, Japan (AFP) — Tokyo stocks slipped Wednesday morning on lingering worries over North Korea, with the yen strengthening against its major peers due partly to its status as a safe haven currency.
The benchmark Nikkei 225 index fell 0.31 percent, or 59.94 points, to 19,325.87 by the break — a four-month low — while the broader Topix index was down 0.20 percent, or 3.20 points, at 1,587.51.
“No one knows if the issues around North Korea will finally settle into dialogue or lead to military actions,” Mitsushige Akino from Ichiyoshi Asset Management told Bloomberg News.
Jittery traders are profit-taking at this time of “intensifying tensions, he added.
Concerns about North Korea weighed on share prices around the world with US stocks falling sharply in their first day of trading after a long holiday weekend.
The blue-chip Dow Industrial Average closed down 1.07 percent.
The yen traded stronger against the benchmark dollar.
In early Asian trade Wednesday, the dollar bought 108.70 yen, down from 108.79 yen in New York late Tuesday and 109.39 yen in Tokyo Tuesday.
Dollar weakness also came from comments by a top Federal Reserve official that dampened expectations for a third interest rate hike this year.
Fed governor Lael Brainard said the central bank had continued to miss its two percent inflation target for the past year and added: “My view is that we should be cautious about tightening policy further until we are confident inflation is on track to achieve our target.”
Turning to individual Japanese stocks, Toshiba soared nearly four percent after reports that US partner Western Digital would offer a fresh proposal to purchase its memory chip business.
The stronger yen also weighed on global exporting companies such as Japan’s auto giants, with Toyota down 0.75 percent at 6,172 yen by the break, Honda lower by 0.75 percent at 3,036 yen and Nissan off 0.96 percent at 1,082 yen.
Market heavyweight and Uniqlo casual clothing firm Fast Retailing was down 2.16 percent at 30,670 yen, after a brokerage firm downgraded its target share price.
© Agence France-Presse