Tokyo: Shares close lower ahead of US data

[TOKYO] Tokyo stocks closed lower on Monday (Apr 11) as unease lingered over tightening monetary policy in the US and investors awaited key US economic data.

The benchmark Nikkei 225 index lost 0.61 per cent, or 164.28 points, to 26,821.52, while the broader Topix index slid 0.38 per cent, or 7.15 points, to 1,889.64.

The dollar jumped to 125 yen from 124.30 yen in New York and 124.04 yen in Tokyo on Friday.

"Focus this week is on the US and Chinese consumer price indexes for March", to glean clues on the Federal Reserve's monetary policy and that of other central banks, said Takashi Hiroki, chief strategist of Monex.

The Fed has recently taken a hawkish tone as it embarks on an aggressive tightening path, prompting traders to fret over the prospect of higher interest rates.

In Tokyo trading, chip-related shares were lower following a sell-off of US tech shares led by caution over the Fed's monetary policy.

Okasan Online Securities said in a note that "selling was widespread (in the Tokyo market) particularly in growth stocks, as the US Nasdaq index fell".

Chip-testing equipment maker Advantest dropped 1.82 per cent to 8,590 yen while Tokyo Electron, a major producer of tools to build semiconductors, fell 0.63 per cent to 55,070 yen.

Sony Group dived 3.93 per cent to 11,715 yen.

Uniqlo operator Fast Retailing tumbled 2.72 per cent to 58,530 yen while SoftBank Group sank 2.69 per cent to 5,530 yen. AFP