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Tokyo: Stocks open up 0.77%

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Tokyo stocks opened 0.77 per cent higher on a post-holiday Tuesday after further record-setting gains on Wall Street and the dollar's rise against the yen.

[TOKYO] Tokyo stocks opened 0.77 per cent higher on a post-holiday Tuesday after further record-setting gains on Wall Street and the dollar's rise against the yen.

The Nikkei 225 index at the Tokyo Stock Exchange rose 132.88 points to 17,490.39 at the start.

"Despite the bullish market, solid earnings reports have kept price-to-earnings levels reasonable, so the market is not expensive from a valuation perspective," said Takashi Matsumoto, director at Okasan Securities.

"Moreover, November is a historically good month for the market, and with a supporting dollar it should be able to reach fresh year-highs this week," he told Dow Jones Newswires.

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Over the last month, the Nikkei has surged more than 10 per cent on the Bank of Japan's expansion of its massive easing programme and the government's decision to put off a sales tax hike planned for next year.

The dollar also rose some 10 per cent against the yen, benefiting Japanese exporters.

The dollar was at 118.38 yen early Tuesday, up from 118.25 yen in New York Monday afternoon and 117.85 yen in Tokyo on Friday.

Tokyo markets were closed on Monday for a national holiday.

The euro bought US$1.2431 and 147.19 yen against US$1.2439 and 147.10 yen in US trade Monday.

AFP

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