Tokyo shares open lower on Wall St losses

 29 Dec 2015 - 8:53

Tokyo shares open lower on Wall St losses

Tokyo: Tokyo shares opened lower in thin trade on Tuesday, following a lacklustre session on Wall Street where declining oil prices weighed on the market.

The slump in oil prices, which resumed Monday following disappointing industrial data out of China and Japan, has underscored fears about a broader slowdown in the global economy.

On Wall Street, the main indices ended in the red on Monday following the slide in crude prices.

The Dow shed 0.14 percent, the S&P 500 fell 0.22 percent and the Nasdaq dropped 0.15 percent.

"We saw the lowest turnover this year again yesterday, but I expect that to improve today," Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told Bloomberg News.

"That said, it'll be difficult to see much of a direction in the market. The overseas market was lacklustre, so Japanese stocks may lose some of the gains made yesterday."

"Movement in Chinese shares will continue to have an effect on other markets," Matsuno said.

In Tokyo, the benchmark Nikkei 225 index at the Tokyo Stock Exchange ticked down 0.16 percent, or 29.96 points, to 18,843.39 in opening deals, after snapping a five-day losing streak on bargain-buying the previous day.

The broader Topix index of all first-section shares was down 0.11 percent, or 1.63 points, at 1,527.59.

On Monday, dealers shrugged off a 1.0 percent drop in Japan's factory output in November -- after two months of gains -- announced by the government shortly before Tokyo opened.

The disappointing data followed separate figures last week that showed still-weak inflation and household spending, underlining the struggle of the world's number three economy to stage a rapid recovery.

In currency trading, the dollar traded lower at 120.26 yen from 120.38 yen Monday in New York.

The euro rose to $1.0978 and 132.06 yen from $1.0970 and 132.05 yen in US trade.