Tokyo: Stocks open 0.42% lower

[TOKYO] Tokyo stocks opened 0.42 per cent lower on Tuesday on a negative lead from Wall Street and a strong yen.

The Nikkei 225 index at the Tokyo Stock Exchange lost 85.93 points to 20,462.18 at the start.

On Monday, Wall Street stocks fell with petroleum-linked equities retreating on a big drop in oil prices.

The Dow Jones Industrial Average declined 0.52 per cent, while the broad-based S&P 500 shed 0.28 per cent.

US data on Monday showed slightly weaker manufacturing activity and a modest gain in consumer spending. Investors are especially focused on Friday's jobs report for July.

In Tokyo forex trade, the dollar was at 123.93 yen early Tuesday, down from 123.99 yen in New York late Monday and 124.05 yen in Tokyo on Monday.

A strong yen is negative for Japanese exporters as it makes them less competitive abroad and decreases profits when repatriated.

The euro changed hands at US$1.0953 and 135.74 yen against US$1.0954 and 135.82 yen in US trade.

AFP