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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.