Tokyo stocks open down 1.12%

TOKYO (AFP) - Tokyo stocks opened post-holiday trading down 1.12 per cent on Wednesday after the yen's gains against the dollar and falls on Wall Street.

The Nikkei 225 index lost 161.26 points to 14,296.25 at the open.

Tokyo markets were closed for Monday and Tuesday for national holidays.

The dollar was at 101.70 yen early Wednesday, hardly changed from 101.73 yen in New York Tuesday afternoon but down from 102.36 yen in Tokyo on Friday before the Japanese holidays.

A strong yen is negative for Japanese exporters as it makes them less competitive abroad and erodes repatriated profits.

US stocks retreated Tuesday as a Twitter sell-off Twitter revived worries about the tech sector and disappointing earnings from insurer AIG hit financial stocks.

The Dow Jones Industrial Average fell 0.78 per cent to 16,401.02.

The euro bought US$1.3928 and 141.66 yen early Wednesday compared with US$1.3926 and 141.67 yen in US trade on Tuesday.