Tokyo: Stocks open down 0.08% lower

[TOKYO] Tokyo stocks opened slightly lower on Friday following the release of lacklustre Japanese economic data showing tepid inflation and a surprise drop in household spending.

The Nikkei 225 index at the Tokyo Stock Exchange slipped 16.28 points, or 0.08 per cent, to 20,506.55 at the start.

A report from the internal affairs ministry showed household spending fell 2.0 per cent year-on-year in June against market expectations that family spending would keep increasing after a rise of 4.8 per cent in May.

Core inflation, excluding volatile fresh food prices, was up 0.1 per cent, well short of the Bank of Japan's 2.0 per cent target.

The dollar lost steam Friday after rising on a report on US growth in the second quarter that confirmed the economy is expanding at a moderate rate.

The greenback was at 123.95 yen early Friday compared with 124.15 yen in New York late Thursday.

The euro bought US$1.0941 and 135.66 yen against US$1.0931 and 135.70 yen in US trade.

The US Commerce Department said Thursday the world's top economy expanded at an annual rate of 2.3 per cent in the April-June period, the strongest pace of growth since the third quarter of 2014.

The Dow Jones Industrial Average dipped 0.03 per cent Thursday, dragged by lower by weak Procter & Gamble results.

The broad-based S&P 500 was almost flat while the tech-rich Nasdaq Composite Index rose 0.33 per cent.

AFP