ZCZC
BCN-06
STOCKS-MARKETS-JAPAN-OPEN
Tokyo stocks open higher, encouraged by upbeat US data
TOKYO, June 4, 2018 (BSS/AFP) – Tokyo stocks opened higher on Monday
supported by brisk US jobs growth and manufacturing data that boosted Wall
Street.
The benchmark Nikkei 225 index rose 0.84 percent or 187.16 points to
22,358.51 in early trade while the broader Topix index was up 0.89 percent or
15.49 points at 1,764.66.
US President Donald Trump’s announcement Friday that he will meet North
Korean leader Kim Jong Un on June 12 as scheduled is also supporting the
Japanese market, analysts said.
The dollar fetched 109.60 yen in early Asian trade, against 109.50 yen in
New York.
“With the healthy condition of the US economy confirmed, the US Federal
Reserve is certain to hike its policy rate,” said Masayuki Kubota, chief
strategist at Rakuten Securities.
“A rate hike is a double-edged sword, as the widening of the interest rate
gap would produce a cheaper yen, while an interest rate hike would weigh on
global share prices,” he said.
Tokyo stocks would see range-bound trading after initial rallies, he said.
For this week, uncertainties about the political situation in Italy and
Spain, as well lingering concerns over US protectionist trade policy, could
weigh on the market, said Daiwa Securities strategist Tsuyoshi Nomaguchi.
In Tokyo, Toyota was up 1.97 percent at 7,262 yen, Sony was up 1.90
percent at 5,260 yen and Mitsubishi UFJ Financial was up 1.19 percent at
674.1 yen.
BSS/AFP/HR/0948