TOKYO, Japan (AFP) — Tokyo stocks opened lower Friday, as a stronger yen dented exporters and Wall Street disappointed.
US equities fell on Thursday after a recent rally in oil prices fizzled, offering a weak lead to Japanese stocks at the start of the global day.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange dropped 0.90 percent, or 146.40 points, to 16,050.40 in opening deals, after a 2.28-percent jump the previous day.
The broader Topix index of all first-section shares lost 0.94 percent, or 12.37 points, to 1,298.83.
Analysts noted a strengthening currency — up to 113.11 yen to the dollar from 113.24 yen Thursday in New York — could weigh on the profitability of Japanese exporters.
“The stronger yen will be a burden on Japanese markets,” Hideyuki Ishiguro, a senior strategist at Okasan Securities, told Bloomberg News.
“Investors are concerned at the downside of earnings, especially for exporters, which may weigh down the markets.
“We’re not in a place where we can buy. The yen may strengthen further versus the dollar.”
The Japanese market was also suffering from profit-taking after Thursday’s gain.
Stocks in the US and Europe have stabilised over the last week or so after a bruising January, but worries about weaker global growth remain.
On Wall Street, the Dow closed 0.3 percent lower on Thursday, while the S&P 500 lost 0.5 percent and the Nasdaq fell 1.0 percent.
In Europe, London finished 1.0 percent lower with metals and oil equities falling sharply after Wednesday’s bounce.
Frankfurt gained 0.9 percent, while Paris ended up 0.2 percent.
On Thursday, the Organization for Economic Cooperation and Development trimmed its 2016 global growth forecast to 3.0 percent from 3.3 percent.
The Paris-based OECD cited slowing growth in emerging economies, sluggish demand, weak investment and a high risk of financial instability as reasons for its outlook cut.
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