TOKYO - Tokyo stocks opened lower on Tuesday after a long weekend, tracking falls on Wall Street as investors braced for more large interest rate hikes from the US Federal Reserve.
The benchmark Nikkei 225 index was down 1.50 percent, or 405.44 points, at 26,710.67 in early trade, while the broader Topix index slipped 1.09 percent, or 20.86 points, to 1,885.94.
"Japanese shares are seen starting with falls after days of drops in the US market," senior market analyst Toshiyuki Kanayama said in a note.
Last week closed out with news that US firms created a net 263,000 jobs in September.
While that was down from August, it was more than expected, indicating that the US economy is not yet slowing considerably and inflationary pressures likely remain.
That sent global stocks sharply lower as it means the Fed is unlikely to relent on interest rate hikes that are meant to tame inflation.
The prospect of higher yields on debt was a boon for the dollar, however, which gained on its main rivals.
In Asia, the dollar fetched 145.68 yen against 145.77 yen in New York late Monday, hovering around the level at which the Japanese government intervened last month.
In Tokyo, chip-linked shares were lower after US semiconductor-related stocks dropped following the US announcement Friday of new export controls aimed at restricting China's ability to buy and manufacture high-end chips with military applications.
Chip-making equipment manufacturer Tokyo Electron dropped 4.87 percent to 36,940, and chip-testing equipment maker Advantest plunged 4.77 percent to 6,990 yen.
Sony was down 4.19 percent at 9,477 yen, and Hitachi was off 2.86 percent at 6,352 yen.
Japan Airlines was up 2.33 percent at 2,764 yen and its rival ANA Holdings was up 2.07 percent at 2,840 yen as Japan relaxed tough Covid restrictions on foreign tourists, including resuming visa-free travel and individual travel.