TOKYO: Tokyo stocks slipped 0.10 percent Tuesday morning, following US markets lower as investors kept a wary eye on China after weak manufacturing data reignited concerns about the world s number two economy.
The Nikkei 225 index at the Tokyo Stock Exchange fell 21.17 points to 20,526.94 by the break, while the broader Topix of all first-section shares edged down 0.04 percent, or 0.71 points, to 1,658.89.
“The decline in US shares overnight was behind today s selling sentiment here,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.
On Monday, Wall Street fell with petroleum-linked equities retreating on a big drop in oil prices.
The Dow Jones Industrial Average declined 0.52 percent, while the broad-based S&P 500 shed 0.28 percent.
“The two negative factors for Japanese stocks today are the concerns over China and cheaper US stocks caused by falling commodity prices,” Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told Bloomberg News.
A key gauge of Chinese manufacturing activity plunged to a two-year low in July, according to figures published Monday, suggesting the world s second-largest economy is struggling.
But “domestic earnings will act as a support” today, Matsuno said.
More than 90 companies listed on the Topix report release quarterly results Tuesday, including auto giant Toyota.
Among firms that have already reported, 61 percent exceeded profit expectations, an improvement from the 48 percent that beat forecasts in the previous quarter, according to data compiled by Bloomberg.
