Tokyo: Stocks open 0.38% higher

[TOKYO] Tokyo stocks opened 0.38 per cent higher Monday, after upbeat Japanese growth data as well as a positive US jobs report that pushed the yen down.

The Nikkei 225 index at the Tokyo Stock Exchange rose 76.95 points to 20,537.85 at the start.

The higher opening came after fresh data showed Japan's economy grew 1.0 per cent in the first quarter, up from an initial estimate of 0.6 per cent expansion.

The dollar stayed firm after soaring on Friday as a strong US jobs report sparked talk that the Federal Reserve would move more quickly to raise interest rates.

The greenback was at 125.58 yen early Monday in Tokyo, against 125.56 yen late Friday in New York where the greenback climbed briefly to a 13-year high of 125.86 yen.

A weak yen is positive for Japanese exporters as it makes them more competitive abroad and increases profits when repatriated.

Wall Street stocks finished mostly lower on Friday. The Dow Jones Industrial Average shed 0.31 per cent and the broad-based S&P 500 dropped 0.14 per cent, while the tech-rich Nasdaq Composite Index advanced 0.18 per cent.

The US economy pumped out 280,000 jobs in May, far more than expected in a solid sign of growth after a winter stall. The report also showed better wage growth, in an indication of tightening for the labour market.

The euro slipped to US$1.1100 and 139.39 yen on Monday from US$1.1115 and 139.56 yen in US trade on Friday as investors watched for any sign of progress in Greek debt talks.

AFP