TOKYO – Tokyo stocks opened lower today as investors searched for new cues amid sustained optimism about US economic growth as vaccinations against the coronavirus continue.
The benchmark Nikkei 225 index dropped 0.32%, or 95.93 points, to 29,587.44, while the broader Topix index slipped 0.29%, or 5.61 points, to 1,955.26.
“Although US shares closed at new records highs, the Tokyo market may take a wait-and-see stance before the corporate earnings season kicks into high gear” from later this week, SBI Securities said in a note.
The Dow gained 0.5% to end at 34,201.13 on Friday while the S&P 500 rose 0.4% to hit 4,185.53, both new records, maintaining general optimism in the global market.
But Tokyo shares faced sell orders as the Nikkei approached around 30,000, while players looked for fresh incentives to move the market.
“Investors are waiting for fresh cues. The Nikkei index is expected to hover inside a narrow range,” Okasan Online Securities said.
Investors are generally hopeful about accelerated vaccination efforts in the US as a step toward economic normalcy.
But vaccination in Japan has moved very slowly, with only the Pfizer version approved and so far going to some medical workers and the elderly.
Prime Minister Yoshihide Suga spoke with Pfizer chief Albert Bourla during the weekend and asked for more supplies.
Japan’s minister in charge of vaccination, Taro Kono, said yesterday that Japan should have enough vaccines for all citizens by September.
“Prime Minister Suga’s requests for the Pfizer vaccine can provide support for the market. But the market is unlikely to chase its upside as Japan sees increasing daily new infection counts,” Okasan Online Securities said.
Shortly before the opening bell, the Japanese government said the nation’s exports in March surged 16.1% from a year ago, driven by automobiles, while imports rose 5.7%.
The dollar stood at ¥108.68, a little changed from ¥108.79 in New York on Friday.
Blue chip shares faltered in the Tokyo market.
Uniqlo operator Fast Retailing dropped 1.62% to ¥88,770. Toyota fell 0.28% to ¥8,506. Sony Group lost 0.91% to ¥11,970. SoftBank Group fell 0.69% to ¥10,010.
But digital imaging and medical equipment maker FujiFilm Holdings rose 1.02% to ¥6,920.
Electronic parts maker Murata Manufacturing added 1.56% to ¥9,133. Tokyo Electron, a major producer of tools to build semiconductors, added 0.86% to ¥49,540. – AFP, April 19, 2021
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