Tokyo stocks opened 0.26 per cent today despite an overnight rise on Wall Street, pressured by concerns that Italy would be the next European country to succumb to the debt crisis contagion.

The Nikkei 225 index at the Tokyo Stock Exchange opened down 22.73 points at 8,744.36.

The US stocks staged a late rally yesterday on reports that Greece’s International Monetary Fund representative might be chosen as its new prime minister, with the Dow Jones Industrial Average closing up 0.71 per cent at 12,068.39.

With the IMF a key player in Greece’s rescue, the former finance minister, Mr Panagiotis Roumeliotis, would be well placed to ensure the bailout progresses steadily and to restore market trust in Greece and the eurozone.

But “the focus is shifting to Italy from Greece as expected,” said Mr Yoshihiro Okumura, general manager at Chibagin Asset Management.

Lower investor confidence in Italy has sent its bond prices lower and yields sharply upwards. Yields on the country’s 10-year government bonds pushed above 6.6 per cent yesterday for the first time since the introduction of the euro.

“It’s difficult to digest the mixed situation,” Mr Okumura said, referring to the concern over Italy and expectations that Greece would receive its bailout money.

European Union finance ministers are expected to sign off on Greece’s sixth bailout loan tranche at a meeting later in the day.

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