Tokyo stocks flat by break
The Dow slumped 1.65 percent, the S&P 500 fell 1.34 percent and the Nasdaq shed 1.89 percent.
TOKYO (AFP) - Tokyo stocks were flat Wednesday morning after a tumble on Wall Street that came in response to a disappointing stream of corporate earnings and mixed US economic data.
The Nikkei 225 index at the Tokyo Stock Exchange was down 9.67 points at 17,758.63 by the break, while the broader Topix index of all first-section shares slipped 0.19 percent, or 2.71 points, to 1,423.67.
US shares plunged Tuesday after Caterpillar, Microsoft, and conglomerate Procter & Gamble all announced weak earnings or negative outlooks, raising concerns about the strength of the US economy.
Adding to the weak sentiment was official data showing a 3.4 percent drop in US durable goods orders in December, which offset a Conference Board report that said US consumer confidence jumped in January to its highest level in more than seven years.
The Dow slumped 1.65 percent, the S&P 500 fell 1.34 percent and the Nasdaq shed 1.89 percent.
"Durable goods orders were worse than expected and that cooled investor sentiment, Hiroichi Nishi, an equities manager at SMBC Nikko Securities, told Bloomberg News.
"We ve also had some bad earnings. Investors had been too optimistic about the US recovery, but it s actually patchy.
Focus will now turn to the US Federal Reserve s meeting later in the day to see if policymakers hint at any change in the timeline for an interest rate hike, which is expected by mid-year.
Traders are also nervously looking to Europe where Greece s new anti-austerity government prepares to face off with its international creditors over its bailout.
In Tokyo, the Nikkei pared most of its early losses as the yen weakened, a plus for shares of exporters.
Sony jumped 3.35 percent to 2,841.0 yen as Japan s leading Nikkei business daily said the electronics giant may cut another 1,000 jobs at its struggling smartphone unit, part of a huge restructuring aimed at moving past years of losses.
Construction and mining equipment maker Komatsu fell 2.93 percent to 2,569.5 yen ahead of its earnings report later in the day and after US rival Caterpillar published weak results.
Also reporting later in the day are videogame giant Nintendo, whose shares slipped 0.53 percent to 12,250.0 yen, and Canon which was down 0.20 percent at 3,927.0 yen.
In forex markets, the dollar climbed to 118.09 yen in Asian forex markets, from 117.90 yen in New York.
