TOKYO – Tokyo stocks opened lower today as concern grew that US inflation could prompt more aggressive central bank policies to contain prices.
The benchmark Nikkei 225 index was down 0.21% or 62.54 points at 29,044.24 at the open, while the broader Topix index slipped 0.10% or 2.08 points to 2,005.88.
The indexes then hovered between negative and positive territory in cautious trade, as “falls in all three US indices following US consumer price index data weigh on the Japanese market,” Okasan Online Securities said.
Investors are “staying away from active trade ahead of the settlement of derivatives” later this week, the brokerage added.
The US consumer price index surged 6.2% in the 12 months to October, a 30-year high amid rising oil, auto and housing prices.
Some economists think the US Federal Reserve will have to be more aggressive to contain prices, pulling back more quickly on its bond-buying program and potentially raising the key borrowing rate multiple times next year.
The dollar fetched 113.27 yen in early Asian trade, against 113.87 yen in New York late yesterday.
In Tokyo, Mazda was up 0.39% at 1,038 yen after it reported a better-than-expected quarterly operating profit.
Its bigger rival Toyota was up 0.50% at 2,015.5 yen while Honda was down 0.49% at 3,244 yen.
Airlines and shipping firms were higher after reports said the government could resume a domestic tourism campaign as early as January, with JAL trading up 0.71% at 2,545 yen and Nippon Yusen up 1.05% at 7,680 yen.
Meanwhile, investment giant SoftBank Group was off 1.22% at 6,474 yen, IT and electronics firm Fujitsu was off 0.78% at 20,325 yen, and chip maker Renesas Electronics was down 0.62% at 1,444 yen. – AFP, November 11, 2021
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