Tokyo, Nov 18 (AFP/APP): Tokyo stocks opened slightly lower on Monday with investors watching the forex market and US-China trade talks.
The benchmark Nikkei 225 index fell 0.04 percent or 8.70 points to 23,294.62, while the broader Topix index lost 0.10 percent or 1.63 points to 1,695.04.
Investors were encouraged by the solid finishes of US shares last week, with many hoping for progress in the US-China trade talks.
But players are also starting to sense resistance at the top side of the Nikkei index, which finished last week at a 13-month high, encouraging profit taking.
“Investors are noticing heavy upside as the Nikkei approaches the mid-range of the 23,000-yen level,” Okasan Online Securities said in a note to clients.
The Dow’s robust performance, going above 28,000 last week, should generally provide support for Japanese shares, it added.
Tokyo stocks open modestly higher in subdued trade
Investors are also eyeing the dollar, which stood at 108.71 yen, effectively maintaining its ground since Friday in New York, where it fetched 108.78 yen, the brokerage said.
Tokyo shares will benefit if it remains stable at the current high level, it added.
The Tokyo market will likely take clues from headlines related to US-China talks, as players search for fresh news to move the market, Okasan said.
But investors generally expect, as technical charts suggest, that the Nikkei should have room to climb toward the year end.
“After an adjustment period, the market may test its higher resistance,” it added.
Among major shares, popular messaging app Line rose 2.38 percent to 5,160 after the firm said it will merge with the operator of Yahoo Japan, called Z Holdings, a SoftBank Group company.
SoftBank Group added 1.43 percent to 4,321 yen, while Z Holdings added 0.73 percent to 420.
Sony added 1.46 percent to 6,824 yen, while Panasonic fell 0.59 percent to 992.4.
Uniqlo operator Fast Retailing fell 0.21 percent to 67,330.
