Tokyo’s Nikkei opens slightly lower
Tokyo, Jan 21 (AFP/APP): Tokyo stocks opened slightly lower on Tuesday, with investors on the sidelines over a lack of trading pegs, a day after the benchmark index posted its best finish in nearly 16 months.
The key Nikkei 225 index slipped 0.15 percent, or 36.29 points, to 24,047.22 in early trade while the broader Topix index was down 0.10 percent or 1.69 points at 1,742.47.
Investors held off active trading in the absence of trading cues with the US markets closed for a holiday on Monday.
As global leaders gather in Davos this week, the IMF trimmed its global growth estimate to 3.3 percent from 3.4 percent for 2020, and to 3.4 percent from 3.6 percent for 2021.
“Importantly though, growth is still forecast to be stronger than the 2.9 percent recorded in 2019,” said Tapas Strickland, director of economics and markets at National Australia Bank.
Risks are “less skewed to the downside, given preliminary signs the slump in manufacturing and global trade is starting to bottom,” he said in a commentary.
Market players are also watching US talks with European nations.
Emmanuel Macron and Donald Trump have agreed to extend negotiations on a dispute over a French tax on digital giants to the end of the year, postponing Washington’s threat of sanctions against Paris, according to a French diplomatic source.
“Further development on President Trump’s trade policy with Europe is likely today with Trump giving the opening address at Davos,” Strickland said, noting his 2018 address foreshadowed Washington’s more unilateral approach to policy.
A new risk factor is a SARS-like virus that has spread beyond China, analysts said, after a Beijing government expert said Monday the virus can spread between humans.
In Tokyo stocks trade, energy companies were lower with Inpex down 0.97 percent at 1,113.5 yen.
Toyota rose 1.0 percent to 7,858 yen while Uniqlo clothing chain operator Fast Retailing was down 0.34 percent at 63,980 yen.
The dollar was holding steady, trading at 110.17 yen early Tuesday.
The Bank of Japan is to wrap up a two-day policy meeting later Tuesday but is not expected to offer any policy changes.
