TOKYO, Sept 19, 2019 (BSS/AFP) – Tokyo stocks opened higher on Thursday
helped by a cheaper yen against the dollar after the US Federal Reserve
announced a rate cut.
The benchmark Nikkei 225 index was up 0.85 percent or 186.71 points at
22,147.42, while the broader Topix index was up 0.78 percent or 12.59 points
at 1,619.21.
“Japanese shares are seen gaining slowly after the yen became cheaper
against the dollar following the Federal Reserve’s announcement,” Okasan
Online Securities said in a commentary.
Wall Street had a split finish on Wednesday while other markets kept to
the sidelines as the US Federal Reserve announced its second interest rate
cut of the year.
As markets widely expected, the Fed cut the benchmark US lending rate by a
quarter point.
Currency traders, however, reacted to what were seen as hawkish further
rate cut comments by the central bank, sending the dollar higher against its
major peers.
Japan’s central bank is expected to issue its own policy decision later
Thursday, with most observers forecasting it will not authorise further
easing.
The dollar fetched 108.43 yen in Asian trade, unchanged from overnight in
New York but higher than 108.20 yen in Tokyo afternoon trade on Wednesday.
Automakers were among the winners, with Honda rallying 0.82 percent to
2,921 yen, Toyota trading up 0.29 percent at 7,442 yen and Nissan up 0.43
percent at 717 yen.
Airlines also gained, with ANA holdings trading up 0.75 percent at 3,746,
Japan Airlines up 0.73 percent at 3,423 yen.