Tokyo: Shares open lower on last trading day of year

[TOKYO] Tokyo stocks opened lower on Wednesday, their last trading day of the year, as investors locked in profits after US shares retreated from record highs.

The benchmark Nikkei 225 index, which hit a 30-year high on Tuesday, fell 0.24 per cent, or 67.16 points, to 27,500.99 in early trade, while the broader Topix index was down 0.59 per cent, or 10.80 points, at 1,808.38.

"Japanese shares are likely to have a breather, negatively reacting to a retreat in US shares," Okasan Online Securities said.

Wall Street closed lower Tuesday after the Senate blocked a move to boost federal stimulus cheques to US$2,000, sending indices retreating from records set the day before.

Much of Monday's upbeat sentiment came after US President Donald Trump signed off on a US$900 billion coronavirus relief package, as well as a US$1.4 trillion budget to fund the government.

"Caution remains high following the fast gains" of Japanese shares on Tuesday, Okasan said.

The Nikkei index had jumped more than two per cent to its highest closing figure since August 1990 on hopes for economic recovery.

The US dollar fetched 103.51 yen in early Asian trade against 103.55 on Tuesday in New York.

In Tokyo share trading, Sony dropped 0.96 per cent to 10,290 yen with Toyota down 0.54 per cent at 7,970 yen on profit-taking.

But Nintendo gained 0.85 per cent to 66,420 yen, with Japan Airlines also up 0.92 per cent at 1,956 yen.

AFP