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TOKYO: Tokyo stocks opened lower Monday, tracking US falls on investor concern over higher interest rates, with focus shifting to Japanese corporate earnings.

The benchmark Nikkei 225 index was down 1.12 percent, or 302.68 points, at 26,700.88 in early trade, while the broader Topix index fell 0.79 percent, or 15.12 points, to 1,900.79.

“Japanese shares will probably be weighed down this week after the US Nasdaq index hit a new low for this year,” Okasan Online Securities said.

But some bargain-hunting is likely to support the Japanese market, with investors looking for shares with expected good earnings, the brokerage added.

Major companies including Sony, Toyota and SoftBank Group are due to publish full-year earnings reports this week.

The dollar fetched 130.74 yen in early Asian trade, against 130.56 yen in New York on Friday.

Tokyo shares drift lower with eyes on Fed

Construction equipment maker Komatsu dropped 4.12 percent to 3,097 yen and industrial robot maker Fanuc slipped 1.88 percent to 19,280 yen.

Japan Airlines edged up 0.09 percent to 2,244 yen after posting an annual net loss of 177.5 billion yen ($1.3 billion), up from the previous year’s 286.7 billion yen loss.

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