Tokyo: Stocks open 0.84% higher
[TOKYO] Tokyo stocks opened 0.84 per cent higher on Friday following rallies on Wall Street and a rebound in the dollar against the yen.
The Nikkei 225 index at the Tokyo Stock Exchange added 141.56 points to 16,934.04 at the start.
The dollar was at 115.35 yen early Friday, up from 115.16 yen in New York Thursday afternoon.
The yen plunged against the dollar after the Bank of Japan's decision last week to expand its already huge stimulus programme.
And while it recovered somewhat on Thursday it was facing another wave of selling pressure.
"The Bank of Japan's aggressive quantitative easing, announced last Friday, is likely to continue to influence the market via currency level fluctuations - mostly to the upside," said Yutaka Miura, senior technical analyst at Mizuho Securities.
"It's likely that the fallout effect will continue through mid-December, keeping stock prices relatively well-supported," Mr Miura told Dow Jones Newswires.
A strong dollar is positive for Japanese exporters as it makes them more competitive abroad and inflates profits when repatriated.
On Thursday, the Dow and S&P 500 closed at new record highs for the second day in a row as investors looked ahead to Friday's jobs report.
The Dow Jones Industrial Average rose 0.40 per cent while the broad-based S&P 500 gained 0.38 per cent.
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
Japan may have spent 5.5 trillion yen on Apr 29 intervention, BOJ data suggests
Singapore stocks rise, tracking regional bourses; STI up 0.3%
Asia: Markets build on Wall Street rally, yen holds bounce
Singapore shares open in the red on Tuesday; STI down 0.3%
Stocks to watch: Wilmar, MLT, FEHT, CDLHT, Starhill Global Reit, IReit Global
Europe: Stocks eke out gains after German inflation data; Deutsche Bank drops