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Tokyo: Stocks flat after upsurge


[TOKYO] Tokyo stocks opened flat on Tuesday after surging nearly four percent the previous day, in the biggest one-day points gain in over a year.

The Nikkei 225 index at the Tokyo Stock Exchange was up 0.03 per cent, or 4.06 points, to 15,115.29 at the start.

On Monday the benchmark index jumped 3.98 per cent thanks to a sharp rise on Wall Street and as a weaker yen.

"The resiliency of the US stock market is really the key for Japan shares right now, as they have resisted a severe correction for so long," said Monex Inc. chief strategist Takashi Hiroki.

The Dow Jones Industrial Average gained 0.12 per cent Monday, shaking off weak IBM earnings and extending the rally that began late last week.

The broad-based S&P 500 rose 0.91 per cent, while the tech-rich Nasdaq Composite Index jumped 1.35 per cent.

In Tokyo shares trade, Fujifilm Holdings jumped 3.18 per cent to 3,500.5 yen in the first few minutes of trade after the group said it decided on additional production of its flu drug Avigan, which has been used as an experimental cure for the deadly Ebola epidemic.

Shares in automotive parts maker Takata plunged 6.95 per cent to 2,034 yen after US authorities urged owners of vehicles with potentially fatally defective Takata air bags to seek repairs.

The dollar was at 106.95 yen early Tuesday, compared with 106.92 yen in New York Monday afternoon.

The euro bought US$1.2790 and 136.80 yen against US$1.2800 and 136.86 yen in US trade. AFP