Tokyo stocks follow Wall Street lower
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TOKYO, Nov 28 AFP
November 28 2012, 12:18AM
Tokyo stocks have opened 0.51 per cent lower after Wall Street closed down amid renewed worries over a US fiscal cliff of tax hikes and spending cuts.
The Nikkei 225 index at the Tokyo Stock Exchange was down 47.82 points at 9,375.48 at the start of trading on Wednesday.
A break in the recent yen-weakening trend, combined with a sell-off in US shares on Tuesday, is likely to help spur profit-taking, analysts said.
"The difficulties with solving the US 'fiscal cliff' are coming to a head again and may present a good selling opportunity for investors," said Kenichi Hirano, market analyst at Tachibana Securities.
"Overall, however, foreign investors are not fleeing, while retail investors remain quite active. The net result could be mostly a net wash for the market with a slight downward bias," he told Dow Jones Newswires.
US stocks fell on Tuesday as fiscal cliff worries overshadowed encouraging US economic data and investors shrugged off Greece's revised bailout deal.
The Dow Jones Industrial Average shed 0.69 per cent at 12,878.13.
The euro bought $US1.2937 and Y106.24 in early Asian trade on Wednesday, hardly changed from $US1.2938 and Y106.30 in New York late on Tuesday.
The dollar was at Y82.10 against Y82.16 in US trade.