Tokyo stocks open down 0.63 per cent; Hong Kong stocks open flat

Tokyo stocks opened 0.63 per cent lower on Tuesday after the yen strengthened slightly following its recent slide.

The Nikkei 225 index at the Tokyo Stock Exchange was down 71.42 points at 11,336.45 at the start.

The drop came after the benchmark index jumped 2.09 per cent the previous day on a weaker yen after Japan avoided an accusation of unfairly devaluing its currency at a weekend meeting of the Group of 20 leading economies.

"The US market was closed (Monday), and European markets were mixed," said Hiroichi Nishi, general manager of equity at SMBC Nikko Securities.

"Profit-taking is likely" due to a relative lack of trading cues.

Hong Kong stocks began Tuesday flat following a loss in the previous session and with few catalysts to fuel buying. The benchmark Hang Seng Index opened 13.72 points lower at 23,368.22.

In early Asian trade, the dollar slipped to 93.69 yen from 93.95 yen in London on Monday afternoon after Japan's finance minister Taro Aso said early Tuesday the government was not considering purchasing foreign bonds.

"The pair (dollar against the yen) fell on Mr Aso's remarks on foreign bond purchases," said a senior dealer at a major Japanese trust bank.

The euro bought 125.19 yen and $1.3362 against 125.43 yen and $1.353 in European trade.