TOKYO, Jan 20 ― Tokyo's key Nikkei index opened slightly lower today after falling nearly three per cent in the previous session but with some support from bargain-hunting purchases.
The benchmark Nikkei 225 was down 0.16 per cent or 42.90 points at 27,424.33 in early trade, while the broader Topix index gained 0.11 per cent or 2.18 points to 1,921.90.
Tokyo trade will remain range-bound “as concerns over US inflation and monetary tightening are weighing on the market, while some investors may seek bargain-hunting after the Nikkei index fell below the 28,000 mark,” Mizuho Securities said in a note.
Wall Street stocks tumbled again overnight as markets grapple with the prospect of higher interest rates.
The dollar fetched ¥114.39 (RM4.19) in early Asian trade, against ¥114.33 in New York late yesterday.
Among major shares in Tokyo, Sony Group rebounded 4.43 per cent to ¥12,960 after dropping nearly 13 per cent in the previous session on news of Microsoft's plans to buy US gaming giant Activision Blizzard.
Hitachi was down 0.61 per cent at ¥6,345 after its CEO reportedly said the engineering giant is ready to sell its 40 per cent stake in Hitachi Transport System but wants to find the right industry partner.
Among other shares, Toyota was up 0.98 per cent at ¥2,325.5 while Panasonic was off 0.93 per cent at ¥1,281.
Japan booked a trade deficit of ¥582.4 billion in December, against market expectations of a 787.6 billion deficit, according to data released by the finance ministry before the opening bell.
In 2021, the world's third-largest economy recorded a trade deficit of ¥1.47 trillion ― the first annual deficit in two years ― as a rise in raw material prices including crude oil and LNG overwhelmed an increase in the export of industrial goods such as automobiles and steel.
The data did not prompt a strong market reaction. ― AFP
