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Tokyo: Stocks open up 0.74%

Monday, October 27, 2014 - 08:26
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[TOKYO] Tokyo stocks opened 0.74 per cent higher on Monday, helped by a stable dollar against the yen and gains on Wall Street last week.

The Nikkei 225 index at the Tokyo Stock Exchange was up 112.64 points at 15,404.28 at the start.

The euro was stable early Monday after a large majority of eurozone banks were given a clean bill of health Sunday by the European Central Bank.

The common currency bought US$1.2676 and 137.10 yen against US$1.2666 and 136.97 yen in New York Friday afternoon.

In the most in-depth and stringent audit of eurozone banks ever undertaken - aimed at preventing a repeat of the crisis that nearly led to the euro's collapse - the ECB found that 25 out of a total 130 banks had a combined capital shortfall of 25 billion euros (US$31 billion) at the end of 2013.

As for Tokyo shares, Takashi Matsumoto, senior strategist at Okasan Securities, said they "should have further room to rise, as long as overseas stocks and the currency market remain stable." The dollar was at 108.18 yen early Monday compared with 108.14 yen in US trade Friday afternoon.

US stocks Friday capped a strong week on a high note as good earnings from Microsoft and others overshadowed a poor report from Amazon.

The Dow Jones Industrial Average gained 0.76 per cent while the broad-based S&P 500 advanced 0.71 per cent.

AFP