Tokyo: Stocks open 1% higher on cheap yen
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TOKYO stocks opened higher on Monday, supported by a cheap yen against the dollar and shrugging off falls on Wall Street last week.
The benchmark Nikkei 225 index was up 1.08 per cent, or 296.80 points, at 27,806.26 in early trade, while the broader Topix index added 0.91 per cent, or 17.95 points, to 1,988.21.
“The Japanese market is seen starting with gains as the dollar-yen has moved in the direction of a cheaper yen,” senior market analyst Toshiyuki Kanayama of Monex said in a note.
The yen dipped against the dollar after strong US jobs data last Friday, which made investors rethink their expectations that the Federal Reserve will soon suspend its rate hikes, Kanayama said.
The dollar was changing hands at 132.35 yen in early Asian trade, up from 132.00 yen in New York and 128.58 yen in Tokyo on Friday.
Hours before the Tokyo opening bell, the yen was also hit by a report that the Japanese government has approached deputy Bank of Japan governor Masayoshi Amamiya as a possible successor to central bank chief Haruhiko Kuroda.
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The report by the business daily Nikkei prompted investors to speculate that the BoJ’s easing policy might continue longer than expected, analysts said.
In Tokyo trade, Nissan rallied 2.57 per cent to 474.5 yen ahead of a press conference by the Japanese automaker and its partner Renault to announce a rebalancing deal.
Their smaller partner Mitsubishi Motors climbed 4.53 per cent to 508 yen.
Among others, Toyota was up 1.56 per cent at 1,921 yen and Hitachi was up 1.59 per cent at 7,016 yen but Sony Group was down 0.94 per cent at 12,085 yen. AFP
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