Tokyo stocks open lower after Toshiba warns on losses

Tokyo shares opened lower Thursday as investors awaited a shareholder meeting at Toshiba, which has warned its annual losses could hit $9 billion stemming largely from its troubled nuclear business.

Early trade was tentative with investors still uncertain over prospects for US President Donald Trump's policies after a humiliating setback on his healthcare bill.

There was also a wary eye on Britain's formal move to exit from the EU, although European and US markets took it in their stride, saying markets had already factored in the start of the two-year process.

The benchmark Nikkei 225 index fell 0.35 percent, or 66.66 points to 19,150.82 in the first few minutes of trade, while the broader Topix slipped 0.30 percent, or 4.64 points, to 1,537.43.

The weak start came after the Dow Jones Industrial Average ended 0.2 percent down at 20,659.32, while the S&P 500 was up 0.1 percent at 2,361.13.

"The Japanese stock market is likely to stay well supported. But a lack of fresh domestic leads might prevent the market from rebounding higher," said Japanese brokerage Okasan Securities.

It said investors were searching for fresh leads to move the market, after global rallies fuelled by Trump's promises of big spending have began to ease.

"Overly optimistic hopes for the Trump administration has faded. Capital is seen flowing to issues that have been placed outside the Trump rallies," Okasan said.

The dollar's relative weakness, now at 111.22 yen in Tokyo and 111.04 yen in New York overnight compared with 113.27 yen seen two weeks ago, also supported the Tokyo market, analysts said.

Among major shares, Toshiba fell 1.09 percent to 217 yen as it held a shareholder meeting after the troubled conglomerate announced its loss-hit US nuclear unit Westinghouse Electric Company has filed for bankruptcy protection.

The company, once among the most respected members of Japan Inc., said it might see a net loss of up to $9 billion for the fiscal year ending Friday as it wrestles with huge losses and accounting fraud claims.

Toyota edged up 0.02 percent 6,125 yen, while rival Nissan lost 1.48 percent to 1,097.5.

Mitsubishi UFJ Financial Group fell 0.86 percent to 706.2 and SoftBank lost 0.49 percent to 7,995 yen.

hih/sls