Tokyo stocks opened lower on Monday after two straight days of gains last week supported by sound corporate earnings and the growing conviction that US inflation will stay tame. 

The benchmark Nikkei 225 index lost 0.27 percent or 60.80 points to 22,697.68 in early trade, while the broader Topix index was down 0.14 percent or 2.57 points at 1,792.39.

“After a weaker-than-expected US CPI data last week, fears that the pace of the Fed’s rate hike may increase ebbed,” Tsuyoshi Nomaguchi, strategist at Daiwa Securities, said.

“Foreign investors may keep buying Japanese shares this week” against the backdrop of brisk corporate earnings supported by a cheaper yen, he said.

The dollar fetched 109.26 yen in early Asian trade, against 109.29 yen in New York late Friday, where the Dow closed up 0.4 percent at 24,831.17.

Fujifilm was up 0.94 percent at 4,282 yen after Xerox on Sunday announced it was terminating a proposed merger with Fujifilm.

Xerox said it was appointing a new chief executive after entering into a settlement with activist shareholders who had contested the takeover.

Toyota was down 0.98 percent at 7,469 yen while its rival Nissan was down 0.04 percent at 1,110.5 yen ahead of its earnings report later Monday.