Tokyo's Nikkei Index Opens Lower After US Losses

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Tokyo’s key Nikkei index opened lower on Thursday after Wall Street shares slumped, as a major US retailer warned of a softer holiday season. online news

The benchmark Nikkei 225 index dipped 0.20 percent, or 56.99 points, to 27,971.31 at the open, but the broader Topix index edged up 0.04 percent, or 0.78 points, to 1,964.07.

“The Tokyo market is expected to fall following losses of US shares,” Monex senior market analyst Toshiyuki Kanayama said.

US shares closed lower overnight as Target’s weak outlook for the holiday season sparked fresh concern about the retail industry.

The Dow Jones Industrial Average dipped 0.1 percent while the broad-based S&P 500 lost 0.8 percent. The tech-rich Nasdaq Composite Index fell 1.5 percent.

“Target is concerned about a weakening consumer and the big profit miss is a bad sign heading into the key holiday period,” said Edward Moya, senior market analyst at OANDA.

The dollar changed hands at 139.40 yen in early Asian trade, down from 139.54 yen on Wednesday in New York.

Chip-related shares were lower, with semiconductor-making equipment manufacturer Tokyo Electron dropping 2.43 percent to 45,270 yen.

Chip-testing equipment maker Advantest tumbled 2.70 percent to 8,980 yen while industrial robot maker Fanuc lost 1.17 percent to 20,655 yen.

Drug maker Daiichi Sankyo gained 1.06 percent to 4,666 yen after the company said it planned to file its COVID-19 vaccine for approval in January following success in trials.

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Hong Kong Market Opens Lower

Hong Kong stocks fell further in the first few minutes of Thursday’s trade, as profit-takers moved in after a recent surge and investors tracked a drop on Wall Street.

The Hang Seng Index shed 1.01 percent, or 18,071.60 points, to 184.88.

The Shanghai Composite Index lost 0.29 percent, or 9.02 points, to 3,110.96, while the Shenzhen Composite Index on China’s second exchange also fell 0.29 percent, or 5.97 points, to 2,032.02.

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