Tokyo stocks open down 0.06 per cent

Tokyo stocks open down 0.06 per cent

TOKYO - Tokyo stocks opened 0.06 per cent lower on Tuesday in subdued trading after a three-day weekend as the yen remained relatively strong against other major currencies.

The Nikkei 225 index at the Tokyo Stock Exchange was down 8.39 points to 13,875.74 at the first few minutes of trading.

The Tokyo markets were closed Monday and will be off again Friday for the Golden Week holiday.

"A weaker dollar from last Friday continues, and that will pose the biggest challenge for stocks in a reduced investor environment," said Tatsunori Kawai, chief strategist at Securities.

"Recent support for US shares is helpful, but not likely to fully offset the stronger yen effect," he added.

In New York on Monday, the Dow Jones Industrial Average gained 106.20 points (0.72 per cent) to 14,818.75, while the S&P 500 closed at a fresh record high of 1,593.61, up 11.37 (0.72 per cent), amid renewed confidence in the eurozone after the formation of the Italian government.

The dollar was changing hands at 97.91 yen (S$1.23) in Asian trade Monday, slightly up from 97.73 yen in New York late Monday.

The euro fetched US$1.3095 (S$1.62) and 128.23 yen, against US$1.3097 and 128.01 yen.

Japan's factory output in March expanded 0.2 per cent in March from the previous month, according to official data released 10 minutes before the opening bell.

The figure, slightly lower than market expectations of a 0.4 per cent rise, marked the fourth consecutive monthly expansion in the country's industrial production, said the Economy, Trade and Industry Ministry.

- Dow Jones Newswires contributed to this story

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