Tokyo: Stocks open lower on fears over economy

[TOKYO] Tokyo stocks opened lower on Thursday as fears over the global growth outlook re-emerged.

The benchmark Nikkei 225 index fell 1.28 per cent, or 273.70 points, to 21,105.03 in early trade, while the broader Topix index lost 1.28 per cent, or 20.62 points, to 1,588.87.

Wall Street stocks declined amid lingering worries over global growth, with investors weighing how seriously to view a big drop in 10-year US Treasury bond yields, traditionally a sign of medium- and long-term economic weakness.

The yield on the 10-year US Treasury note on Wednesday fell to its lowest level since December 2017.

"It has been a cagey night for markets with declines in core global bond yields heightening concerns over a more protracted global growth slowdown," senior FX strategist Rodrigo Catril of National Australia Bank said in a note.

Even though the worries are weighing on the Japanese market, "bargain-hunting purchases may emerge at the Nikkei index's level of around 21,000," Okasan Online Securities strategist Yoshihiro Ito said in a commentary.

The US dollar fetched 110.31 yen in early Asian trade, down slightly from 110.51 yen in New York.

In Tokyo, electronics were among losers, with Sony trading down 2.03 per cent at 4,668 yen, and Panasonic giving up 1.77 per cent at 948.8 yen.

Carmakers were also lower, with Toyota down 0.9 per cent at 6,563 yen, Honda off 1.22 per cent at 2,994 yen and Nissan slipping 0.54 per cent to 920 yen.

Digital camera and precision equipment maker Canon retreated 1.72 per cent to 3,194 yen.

AFP