Tokyo stocks open lower after BOJ raises bond yield cap

Tokyo stocks opened lower Wednesday, a day after the Bank of Japan's decision to raise the cap on long-term Japanese government bond yields was taken by the market as a rate hike.

In the first 15 minutes of trading, the 225-issue Nikkei Stock Average fell 245.74 points, or 0.92 percent, from Tuesday to 26,322.29. The broader Topix index was down 10.47 points, or 0.55 percent, at 1,895.12.

On the top-tier Prime Market, decliners were led by transportation equipment, electric appliance, and real estate issues.

The yen traded in the upper 131 range against the U.S. dollar in Tokyo after hitting 130.58 in New York overnight, its highest since August.

At 9 a.m., the dollar fetched 131.87-90 yen compared with 131.66-76 yen in New York and 132.58-61 yen in Tokyo at 5 p.m. Tuesday.

The euro was quoted at $1.0624-0628 and 140.10-18 yen against $1.0618-0628 and 139.84-94 yen in New York and $1.0611-0612 and 140.70-74 yen in Tokyo late Tuesday afternoon.

© Kyodo News