Tokyo shares open flat after Wall Street losses

Tokyo shares opened flat on Thursday following a negative lead from Wall Street as investors sat on the fence ahead of a key speech from Federal Reserve boss Janet Yellen.

The three main equity indices in the United States finished in the red as petroleum-linked shares dropped on a downturn in oil prices following a bearish US inventory report.

Trading volume in Japan has been light this week as attention has shifted to Yellen's address at the Jackson Hole symposium of global central bankers Friday.

Yellen's speech could shed light on whether better economic data from the world's top economy boosts the odds for a hike in US borrowing costs this year.

"It's too scary to buy into Japanese shares" given the possibility of a volatile reaction to the US central bank chief's remarks, said Mitsushige Akino, an executive officer at Ichiyoshi Asset Management.

The Japanese yen could jump to 95 per dollar if Yellen signals a rate hike is off the table, while it will fall if she suggests a raise is imminent, Akino told Bloomberg News.

In opening deals, the benchmark Nikkei 225 index slipped 0.10 percent, or 17.15 points, to 16,580.15, following the previous day's positive close.

The broader Topix index of all first-section shares was off 0.02 percent, or 0.28 points, at 1,306.43.

In forex markets, the dollar ticked up to 100.53 yen from 100.45 yen Wednesday in New York.

In early Tokyo share trading, energy explorer Inpex slipped 0.9 percent and refiner JX Holdings was down more than one percent.

In addition to weaker oil prices, declines in US pharma companies hit sentiment on Wall Street Wednesday.

The Dow ended down 0.4 percent, while the broad-based S&P 500 lost 0.5 percent and the tech-rich Nasdaq fell 0.8 percent.

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