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Tokyo stocks open lower on profit taking

Tokyo - Tokyo stocks opened lower on Thursday on profit taking after an eight-day winning streak and a rate hike by the US Federal Reserve.

The benchmark Nikkei 225, which closed at an eight-month high on Wednesday, was down 0.35% or 82.97 points at 23 950.82 in early trade, while the broader Topix index was down 0.23% or 4.12 points at 1 817.55.

"Japanese share trade is seen led by sales on profit taking after falls in US shares, a lull in the depreciation of the yen and a sense of overheating after eight consecutive days of rallies," said Yoshihiro Ito, chief strategist at Okasan Online Securities.

The dollar fetched ¥112.70 in Asian trade, compared to ¥112.74 in New York and ¥112.89 in Tokyo on Wednesday.

"Some investors may buy on dips on relief that the US will not impose additional tariff levies on the Japanese auto industry" during bilateral trade talks, Ito said.

US President Donald Trump and Japan's Prime Minister Shinzo Abe announced an agreement to start negotiations on a trade deal on Wednesday in New York, after talks on the sidelines of the United Nations General Assembly.

Abe later told reporters the two leaders had agreed to "refrain from taking measures against the spirit of" their agreement, "which means the US will not impose" additional tariffs on Japanese-made cars.

In Tokyo, banks were among the losers, with Mitsubishi UFJ down 1.75% at ¥703.7, Sumitomo Mitsui Financial off 1.17% at ¥4 541 and Mizuho Financial lower by 0.50% at ¥198.2.

Automakers were mostly higher, with Toyota gaining 0.45% to ¥7 062, Honda up 0.55% at ¥3 446 and Mazda climbing 1.64% at ¥1 356.

In New York, the Dow closed down 0.4% at 26 385.28.

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