Tokyo stocks open down 0.62 percent

TOKYO: Tokyo stocks opened 0.62 percent lower on Tuesday on early profit-taking following a decline in US bourses and a stronger yen.

Moody´s Investors Service downgraded Japan´s sovereign debt rating by one notch to A1 from Aa3 on Monday, but its impact on Japanese stocks appears limited, brokers said.

The Nikkei 225 index at the Tokyo Stock Exchange was down 109.04 points, to 17,481.06 at the start.

"Stocks remain slightly overbought and sensitive to the dollar, so the Nikkei is likely in for a sluggish start," says Shunichi Otsuka, general manager of research and strategy at Ichiyoshi Asset Management.

The dollar was at 118.31 yen early Tuesday, declined from 118.40 yen in New York Monday afternoon.
The euro also sank to 147.53 yen from 147.64 yen in US trade, while buying $1.2470 against $1.2469.

A stronger yen is a negative for Japanese exporters as it makes them less competitive abroad and decreases profits when they are repatriated.