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Tokyo shares open higher following Wall Street rally
TOKYO, Dec 20, 2019 (BSS/AFP) – Tokyo shares opened fractionally higher
Friday after US stocks roared to fresh records overnight, thanks to receding
concerns over US-China trade tensions.
The headline Nikkei index added 0.10 percent or 24.94 points to 23,889.79
in early trade, while the broader Topix index edged up 0.02 percent or 0.39
points to 1,736.50.
All three major US indices advanced to new records overnight with easing
of US-China tension while a new continental trade agreement with the US,
Canada and Mexico advancing in Congress.
It encouraged Tokyo investors, who were eager to return to buying after
recent profit taking had drove down the market, analysts said.
“Tokyo shares are expected to rebound, on the back of gains of US shares
overnight,” Okasan Online Securities said in a note.
“On top of bright external factors, dip-buying should gradually return to
the market after recent profit taking,” Okasan said.
The market essentially shrugged off a historic impeachment of US President
Donald Trump, with most pundits believing the controversial leader will stay
in power with support from the US Senate, controlled by the Republican Party.
“The market basically ignored the impact of the impeachment,” Okasan said.
Meanwhile, Tokyo players remained wary about the yen’s relative strength,
with the dollar standing at 109.38 yen Friday morning, compared with 109.36
yen in New York overnight and 109.59 yen in Tokyo Thursday.
Investors are also starting to adjust their positions ahead of the New
Year holiday break, putting further pressure on the market, Okasan added.
Among major shares, Uniqlo-operator Fast Retailing added 0.14 percent to
66,510 yen.
Energy firm Inpex rose 1.04 percent to 1,162.5 yen.
A higher yen hit exporters.
Toyota dropped 0.88 percent to 7,762 yen. Sony lost 1.56 percent to 7,337
yen. Construction equipment maker Komatsu fell 1.03 percent to 2,654.5 yen.
BSS/AFP/HR/0950