Tokyo: Stocks open 0.43% down

[TOKYO] Tokyo stocks opened down 0.43 per cent on Wednesday, after China's unexpected currency devaluation shook the global financial market.

The Nikkei 225 index at the Tokyo Stock Exchange fell 88.07 points to 20,632.68 at the start.

US stocks fell sharply Tuesday after Beijing's surprise move to devalued its currency, with Apple, General Motors and other companies heavily exposed to China all dropping.

The Dow Jones Industrial Average closed down 212.33 points (1.21 per cent) at 17,402.84.

The broad-based S&P 500 fell 20.11 (0.96 per cent) to 2,084.07, while the tech-rich Nasdaq Composite Index tumbled 65.01 (1.27 per cent) to 5,036.79.

China's central bank devalued its yuan currency by nearly two per cent against the US dollar, as authorities said they were seeking to push market reforms, in the context of a slowing economy.

The dramatic move surprised markets and led to a wave of selling on US and European equity bourses, as well as across many commodity exchanges, raising concerns over whether the Chinese economy is weaker than thought.

In Tokyo forex trade, the dollar fetched 125.08 yen early Wednesday against 125.12 yen in New York late Tuesday.

The euro exchanged hands at US$1.1043 and 138.13 yen compared with US$1.1042 and 138.15 yen in US trade.

AFP