Tokyo: Stocks open 0.28% lower

[TOKYO] Tokyo stocks opened 0.28 per cent lower on Wednesday after eight consecutive days of rises and sharp drops on Wall Street.

The Nikkei 225 index at the Tokyo Stock Exchange, which closed at a new 15-year high on Tuesday, fell 56.84 points to 20,380.64 at the start.

Wall Street stocks fell sharply on Tuesday as the dollar strengthened following solid US economic data and worries over increasingly cash-short Greece's talks with creditors.

The Dow Jones Industrial Average dropped 1.04 per cent while the broad-based S&P 500 fell 1.03 per cent.

The dollar on Tuesday rallied to an eight-year high on the yen, a move that benefits Japanese exporters but also puts a drag on the domestic economy by pushing up import costs.

The dollar was at 123.02 yen early Wednesday after 123.09 yen in New York late Tuesday.

The greenback rose past 123.30 yen briefly on Tuesday on more signs that the US economy is emerging from its winter chill.

The euro stayed pressured under rising worries that cash-starved Greece might not reach a deal with official creditors to avoid possible default on hits massive debts.

The European common currency bought US$1.0877 and 133.85 yen on Wednesday in line with US$1.0879 and 133.92 yen in US trade.

AFP