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STOCKS-JAPAN-OPEN
Tokyo stocks open higher on cheaper yen
TOKYO, Jan 22, 2019 (BSS/AFP) – Tokyo stocks opened modestly higher in
cautious trade Tuesday amid lingering worries over Brexit and the US
government shutdown, with a cheaper yen providing some support to the market.
The benchmark Nikkei 225 index edged up 0.19 percent, or 39.75 points, to
20,759.08 in early trade while the broader Topix index was up 0.20 percent,
or 3.11 points, at 1,569.48.
British Prime Minister Theresa May said Monday she would seek further talks
with Brussels to try to salvage her Brexit deal, but was accused of offering
nothing new to break the political deadlock just 10 weeks before Britain
leaves the EU.
“As worries over the development of Brexit talks linger and there is no
prospect of a solution to the US government shutdown, it is difficult to
actively seek higher share prices,” Yoshihiro Ito, chief strategist at Okasan
Online Securities, said in a commentary.
“On the other hand, the dollar-yen exchange rate of above 109.50 yen is
also deterring investors from selling hard,” he said.
The US market was closed on Monday for the Martin Luther King Jr. Day
holiday.
The dollar fetched 109.65 yen in early Asian trade, little changed from
109.62 yen in London time on Monday but higher than the 109.50 mark seen on
Friday.
A weaker yen against the dollar generally helps Japanese exporters as it
inflates repatriated profits while making their goods cheaper in foreign
markets.
In Tokyo, some exporters were higher, with Honda edging up 0.43 percent to
3,257 yen, Olympus trading up 0.88 percent at 4,550 yen and chip-testing
devices maker Advantest 0.63 percent higher at 2,211 yen.
But China-linked shares were lower after the International Monetary Fund
warned the US-China trade confrontation, among other risks, was threatening
to drag down global growth.
Industrial robot maker Fanuc was down 1.21 percent at 18,350 yen and
construction machine maker Komatsu was off 0.50 percent at 2,760.5 yen.
BSS/AFP/MR/ 1144 hrs