Tokyo shares open lower as exporters, oil firms fall

Tokyo shares opened lower Wednesday as Toyota and other exporters lost ground while a slip in oil prices dragged energy firms lower. 

The Japanese bourse's weak start followed losses on US and European markets, with tepid American inflation and consumer confidence data hurting sentiment.

"The global economy isn't bad but there's no impression that it'll get markedly better from here, and I expect it to remain fairly flat," Mitsushige Akino, an executive officer at Ichiyoshi Investment Management, told Bloomberg News.

"In that situation, US long-term yields don't go up and the yen doesn't weaken,” he added.

A weaker yen boosts the profitability of Japanese firms doing business abroad.

In early trading, the benchmark Nikkei 225 index fell 0.25 percent, or 49.60 points, to 19,628.25, while the Topix index of all first-section shares lost 0.28 percent, or 4.33 points, to sit at 1,568.34.

Overnight, European markets slid as Italy nears a deal for early elections and a fresh game of chicken over Greece's bailout keeps investors on edge.

The political uncertainty in Washington, amid mounting questions over the Trump team's contacts with Russia, is also a key concern for markets.

"Investors are hoping to see (more) US data and see how US political developments will play out," Okasan Online Securities said in a commentary.

In share trading, Toyota fell 0.37 percent to 5,959 yen, while bank Mitsubishi UFJ Financial Group was down 0.96 percent to trade at 689.8 yen.

Uniqlo operator Fast Retailing, a market heavyweight, fell 0.38 percent to 36,830 yen, while Sony rose 0.25 percent to 4,041 yen.

Another fall in oil prices hit energy explorer Inpex which fell 2.16 percent to 997.5 yen while refiner JXTG Holdings dropped 2.1 percent to 480.0 yen.

In forex trading, the dollar bought 110.83 yen against 110.76 yen in New York.