Tokyo stocks opened one percent lower on Monday following losses in markets across Europe and Wall Street.
In US, investors disposed considerable amount of technology stocks on Friday, in a heavy sell-off stimulated by fresh US jobs market data. The new data can support another interest hike by Federal Reserve as early as March.
The investors in Tokyo may look to cash in another crucial US rate raise following strong figures, which weighed on sentiments, analysts said. The US Fed rates in December 2015 for the first time in over nine years.
Investors surprised at the wage growth in the US may start with selling. They’ll be pricing in.Shoji Hirakawa, chief equity strategist at Okasan Securities to Bloomberg news
The benchmark Nikkei 225 index at the Tokyo Stock Exchange declined 1.18 percent, or 198.68 points, to 16,620.91 in opening deals, while the broader Topix index of all first-section shares dropped 1.26 percent, or 17.28 points, to 1,351.69.
The last big week of Japan’s earnings season will be a key cue for Tokyo investors, with Nissan and mobile carrier SoftBank among the major firms set to announce quarterly earnings this week.
In the forex markets, the dollar edged up to 117.00 yen from 116.86 yen Friday in New York.
The euro slipped to $1.1137 and 130.32 yen from $1.1158 and 130.40 yen in US trade.
(With agency inputs)
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