Tokyo: Stocks open up 0.73% higher
[TOKYO] Tokyo stocks opened 0.73 per cent higher on Wednesday following strong gains on Wall Street and as the yen fell against the dollar.
The Nikkei 225 index at the Tokyo Stock Exchange rose 112.48 points to 15,442.39 at the start.
"A higher Wall Street and a higher dollar bode well for the Nikkei, although many investors remain sidelined" while awaiting the outcome of the US Federal Reserve's policy meeting on Wednesday, said SMBC Nikko Securities general manager of equities Hiroichi Nishi.
The Federal Open Market Committee is widely expected to announce it is winding down its stimulus programme but any hint about its future interest rate policy could sway markets.
Currency rates hardly moved after official data early Wednesday showed Japan's industrial production rose a higher-than-expected 2.7 per cent on-month in September.
The dollar was at 108.10 yen in early trade, slightly down from 108.16 yen in New York Tuesday afternoon but up from 107.86 yen in Tokyo earlier Tuesday.
A weak yen is positive for Japanese exports as it makes them more competitive abroad and inflates profits when repatriated.
The euro bought US$1.2736 and 137.72 yen against US$1.2733 and 137.74 yen in US trade.
In New York the blue-chip Dow jumped back above 17,000 Tuesday following a strong report on US consumer confidence and another round of mostly solid corporate earnings.
The Dow Jones Industrial Average rose 1.12 per cent to 17,005.75, its first close above 17,000 since October 3.
AFP
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Vietnam delays launch of new stock trading system
Hong Kong bourse regains favour on hopes of a market revival
Asia: Markets rise as strong US tech earnings offset poor data
Singapore shares open lower on Friday; STI down 0.1%
Stocks to watch: CLI, Great Eastern, MIT, Sheng Siong, iFast, OUE, Far East Orchard
Europe: Stocks retreat on earnings gloom, weak US economic data