TOKYO, June 7, 2019 (BSS/AFP) – Tokyo stocks opened higher Friday as
investor sentiment improved on rallies on Wall Street after a report that the
White House could delay tariffs on Mexican imports.
The benchmark Nikkei 225 index advanced 0.44 percent or 90.56 points to
20,864.60 in early trade, while the broader Topix index was up 0.25 percent
or 3.84 points at 1,528.75.
“Japanese shares are seen backed by US rallies” following a report that
Washington is pushing back a plan to impose fresh tariffs on Mexico,
Toshiyuki Kanayama, senior market analyst at Monex, said in a note.
But investors remain cautious ahead of key US jobs data this weekend, he
added.
The dollar fetched 108.44 yen in early Asian trade, against 108.50 yen in
New York on Thursday.
“The slightly better tone to the Mexico immigration negotiations has seen
all US major equity indices end the day in positive territory,” Rodrigo
Catril, strategist at National Australia Bank, said in a commentary.
“After the close US Vice President (Mike) Pence poured cold water on the
positive vibes, confirming that at this point Mexico tariffs will be imposed
Monday,” he noted.
Meanwhile, Japan’s household spending edged up 1.3 percent in April year-
on-year, the fourth consecutive monthly rise but weaker than market
expectations of a 2.55 percent rise, according to government data released
half an hour before the opening bell.
In Tokyo, chip-related shares were higher, with semiconductor-testing
equipment maker Advantest rallying 2.59 percent to 2,687 yen and chip-making
equipment manufacturer Tokyo Electron gaining 1.70 percent to 15,220 yen.
Nissan was up 1.41 percent to 760.5 yen after Italian-US carmaker Fiat
Chrysler pulled the plug on its proposed merger with the Japanese carmaker’s
alliance partner Renault, saying negotiations had become “unreasonable” due
to political resistance in Paris.
Some other blue-chip exporters were higher, with Sony trading up 0.62
percent at 5,163 yen and Sharp up 0.70 percent at 1,002 yen.
On Wall Street, the Dow ended up 0.7 percent at 25,720.66.