Tokyo shares open lower

Tokyo shares have opened lower on Tuesday after Moody's cut the debt ratings and outlooks of several European countries, blaming the ongoing fallout from the eurozone crisis.

The Nikkei index at the Tokyo Stock Exchange opened 20.46 points or 0.23 per cent lower at 8,978.72. The Topix index of all first section shares lost 1.43 points or 0.18 per cent to 780.25.

Shortly before the opening bell, Moody's downgraded the debt ratings of Italy, Spain and Portugal and placed negative outlooks on France, Britain and Austria.

Ratings were also cut for Slovenia, Slovakia and Malta, with Moody's saying all nine countries were increasingly susceptible to financial and macroeconomic risks from the euro area crisis.

"The impact of the Moody's cuts is negative," SMBC Friend Securities general manager of investment and research Fumiyuki Nakanishi told Dow Jones Newswires, while adding the actions were somewhat expected by the market.

Overnight US shares rose as investors welcomed the Greek parliament's approval of tough austerity measures which paved the way for a new financial rescue of the country.

The Greek parliament's agreement to radical budget cuts late on Sunday appeared to open the way for the 130 billion euro EU bailout package to go through later this week, avoiding a default.

The Dow Jones Industrial Average closed up 72.81 points (0.57 per cent) at 12,874.04.

The broad-based S&P 500 added 9.13 points (0.68 per cent) to 1,351.77, while the Nasdaq Composite gained 27.51 (0.95 per cent) to 2,931.39.

The euro stood at $1.3163 and 102.09 yen, from $1.3191 and 102.34 yen.

The dollar bought 77.55 yen, edging down from 77.58 yen.

• Find a personal loan
• Find a credit card
• Find a home loan
• Find a savings account