The Business Times

Tokyo: Stocks open 1.72% lower

Published Tue, Oct 14, 2014 · 12:33 AM
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[TOKYO] Tokyo stocks opened 1.72 per cent lower on a post-holiday Tuesday following a continued sell-off on Wall Street and the yen's jump against the dollar.

The Nikkei 225 index at the Tokyo Stock Exchange tumbled 263.68 to 15,036.87 at the start.

The dollar was at 107.03 yen early Tuesday, slightly up from 106.83 yen in New York Monday afternoon but sharply down from 107.79 yen in Tokyo on Friday before a three-day weekend.

The Japanese currency often draws buying as a safe currency in time of uncertainty. But the currency's appreciation is negative for Japanese exports as it makes them more expensive abroad and erodes profits when repatriated.

The euro bought US$1.2718 and 136.23 yen early Tuesday against US$1.2753 and 136.25 yen in US trade.

US stocks finished sharply lower again Monday as worries about global growth weighed on the markets a day ahead of major company earnings releases.

The Dow Jones Industrial Average tumbled 1.35 per cent to 16,321.07 and the broad-based S&P 500 sank 1.65 per cent to 1,874.74.

US stocks suffered a massive sell-off last week, with the S&P 500 shedding more than three percent on global growth fears and the Dow ending in negative territory for the year. - AFP

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