Tokyo: Stocks open lower with virus remaining in focus
[TOKYO] Tokyo stocks drifted lower on Friday following a mixed close on Wall Street, as traders digested the latest economic data and coronavirus news.
The benchmark Nikkei 225 index was down 0.5 per cent or 93.24 points at 19,336.20 in early trade, while the broader Topix index lost 0.5 per cent or 7.60 points to 1,418.38.
"Japanese shares are seen led by sell orders in early trade after a mixed performance in US shares," said Toshiyuki Kanayama, senior market analyst at Monex.
US stocks were strongly positive in early Thursday trade, but pulled back following reports that a closely-watched coronavirus drug being developed by Gilead Sciences failed in its first randomised clinical trial.
Turning to Japan, authorities are closely watching next week's Golden Week holidays when people have ben asked to refrain from travelling.
"But there remains the possibility that the infection will spread as these government policies are not legally binding," Okasan Online Securities said in a note.
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"This Japan-specific risk could weigh on the market," it said.
The dollar fetched 107.56 yen in early Asian trade against 107.62 yen in New York late Thursday, following reports the Bank of Japan is set to announce additional monetary easing at a Monday policy meeting, including unlimited bond-buying.
In Tokyo, major shares were lower, with Sony slipping 1.4 per cent to 6,668 yen, SoftBank Group trading down 0.8 per cent at 4,412 yen and Uniqlo casual wear operator Fast Retailing off 1.1 per cent at 48,010 yen.
Japan's core consumer price index that excludes fresh food was up 0.4 per cent in March from the previous year, in line with market expectations, according to official data.
On Wall Street, the Dow ended up 0.2 per cent at 23,515.26 while the broader S&P 500 closed down 0.1 per cent and the tech-rich Nasdaq was flat.
AFP
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