BCN-06Tokyo stocks open higher despite caution over Italy

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BCN-06

STOCKS-MARKETS-JAPAN-OPEN

Tokyo stocks open higher despite caution over Italy

TOKYO, May 31, 2018 (BSS/AFP) – Tokyo stocks opened higher on Thursday,
helped by rallies on Wall Street, rebounding from falls the previous day
driven by worries over political uncertainty in Italy.

The benchmark Nikkei 225 index rose 0.63 percent or 139.48 points to
22,158.00 in early trade while the broader Topix index was up 0.58 percent or
10.09 points at 1,746.22.

The crisis in Italy continued to hover, with anti-establishment leader
Luigi Di Maio seeking to resurrect a populist coalition that collapsed over
the weekend by offering the president a compromise on a controversial pick
for economy minister.

Global investors took a measured view of the situation, bidding up shares
that tumbled in Tuesday’s session, with the Dow closing up 1.3 percent on
Wednesday.

The dollar was quoted at 108.58 yen in early Asian trade, down slightly
from 108.91 yen.

SBI Securities said early morning rebounds helped by those on US bourses
meant “sell orders by those who had been waiting for rebounds may weigh on
the market.”

“Concerns over Italian political-economic risks may linger, which could
prompt a wait-and-see attitude by investors,” it said in a commentary.

Operator of oil development and refinery JXTG rallied 3.28 percent to
697.6 yen and its rival Inpex was up 0.90 percent at 1,222.5 yen after oil
price indexes stabilised in New York, analysts said.

Some exporters were higher, with Olympus trading up 1.19 percent at 3,800
yen, Canon up 0.87 percent at 3,725 yen and Toyota up 1.92 percent at 6,972
yen.

Minutes before the opening bell, official data showed Japan’s factory
output picked up 0.3 percent in April, lower than market expectations of a
1.4 percent rise month-on-month.

The data comes after the world’s third-largest economy slid into reverse
for the first time in two years at the beginning of the year.

BSS/AFP/HR/1005