TOKYO: Tokyo stocks opened flat Thursday as a stronger yen held back gains, despite rallies on Wall Street on further optimism for the US economy.
Wall Street stocks pushed to fresh highs for the fifth day in a row Wednesday, giving a boost to most international equity markets on continued confidence over prospects for the world’s largest economy.
US equities have been on a tear since last week when President Donald Trump vowed to release details of his promised tax cut plan within two to three weeks.
Sentiment was further lifted by a hopeful outlook from US Federal Reserve Chair Janet Yellen and solid data on retail sales and consumer spending.
That all combined to add to the view that the US central bank would soon raise interest rates, a positive for financial stocks.
But Japan’s benchmark Nikkei 225 index slipped 0.12 percent, or 22.57 yen, to 19,415.41 in the first minutes of trading, while the Topix index of all first-section issues was up just 0.07 points at 1,553.76.
The dollar, meanwhile, fetched 114.10 yen in Tokyo, down from 114.43 yen the previous day.
Mitsushige Akino, fund manager at Ichiyoshi Asset Management, said US stocks “could plunge once US President Trump announces a tax cut plan, unless a significant surprise.”
The Nikkei may fall “on profit-taking ahead of psychologically important 19,500 level” without a fresh market mover, he told Bloomberg News.
Shares in Toshiba fell 1.95 percent to 205.6 yen after losing 16 percent the previous two days as fears mount over massive losses from its US nuclear power business.
