TOKYO: Tokyo stocks were slightly lower in early trade Thursday after booking solid gains the previous day as weak Japanese trade data fuelled speculation about more stimulus.
The benchmark Nikkei 225 index at the Tokyo Stock Exchange dropped 0.09 percent, or 16.98 points, to 1.537.30 in mid-morning trade after opening 0.60 percent lower.
Wall Street ended Wednesday s session lower on mixed earnings, as analysts said third-quarter results for US firms were coming in slightly better than expected.
“Investors may want to take profit today,” Mitsushige Akino, executive officer at Ichiyoshi Asset Management in Tokyo, told Bloomberg News.
“They couldn t do that yesterday as stocks rose more than expected.”
Government figures Wednesday showed Japan s exports to China fell again last month as a slowdown in the world s number two economy weighs on the countries huge trading links.
The news sent the Nikkei up, closing 1.91 percent higher, as the weak trade figures fuelled speculation the Bank of Japan will launch another round of stimulus to shore up the economy.
Shipments by Japanese firms to China sank 3.5 percent in September, the finance ministry said, while overall exports globally expanded a tepid 0.6 percent.
The figures highlight the challenges facing Tokyo s attempts to kick-start the economy in the face of slowing global growth, and will heap pressure on the central bank to expand its record 80 trillion yen ($665 billion) annual asset-buying scheme.
The BoJ is expected to hold a meeting next week.
The Dow Jones Industrial Average dropped 0.28 percent, while the broad-based S&P 500 ended 0.58 percent lower and the tech-rich Nasdaq Composite Index fell 0.84 percent.
“After jumping nearly nine percent since the August 25th closing low, the S&P 500 is taking some much-needed rest,” said Sam Stovall, equity strategist at S&P Capital IQ.
On currency markets, the dollar was almost unchanged at 119.92 yen from 119.93 yen Wednesday in New York.
The euro traded at $1.1340 and 135.99 yen from $1.1339 and 136.00 yen in US trade.
