Tokyo stocks open lower on earnings-season caution

Tokyo stocks opened lower on Monday as investors braced for corporate results by major companies.

The benchmark Nikkei 225 index slipped 0.19 percent, or 38.50 points, to 20,735.06 in early trade while the broader Topix index was down 0.22 percent, or 3.47 points, at 1,562.63.

World stocks rose Friday, ending a shaky week on a positive note as investors looked ahead to crucial trade talks between China and the United States, and responded to solid corporate earnings reports.

But “the biggest focus this week will be Japanese and US corporate results” as the earnings season gets into full swing, Okasan Online Securities said in a note.

Stock prices have recently been on a recovery path but “the buyback steam will come to a halt unless companies wipe out uncertainty over earnings”, it said.

US President Donald Trump announced he had agreed to reopen the federal government after public services started to buckle — but markets appeared little moved.

The dollar was trading at 109.36 yen against 109.48 yen in New York Friday afternoon.

In individual stocks trade, Sony bucked the overall downtrend. It rose 0.83 percent to 5,368 yen after a weekend report by the business daily Nikkei that the company would open US and European development centres for image sensors, a key product for smartphones.

Nintendo was down 1.62 percent to 33,340 yen while Takeda rose 0.67 percent to 4,530 yen on reports that the pharmaceutical group would sell its Osaka head office and other neighbouring buildings to a US fund to help reduce debts incurred for its $60-billion takeover of Irish pharmaceuticals firm Shire.