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BCN-08
STOCKS-MARKETS-JAPAN-OPEN
Tokyo stocks open higher on cheaper yen
TOKYO, June 7, 2018 (BSS/AFP) – Tokyo stocks opened higher on Thursday
supported by a cheaper yen, reflecting speculation about the European Central
Bank’s possible movement towards ending its massive bond-buying programme.
The benchmark Nikkei 225 index rose 0.49 percent or 111.93 points to
22,737.66 in early trade while the broader Topix index was up 0.42 percent or
7.49 points at 1,785.08.
ECB policymakers will discuss at a meeting next week when to wind down
their bond-buying spree that has propped up the eurozone economy for the past
three years, a top official said Wednesday.
“As investors remain jittery over trade and tariffs, higher global bond
yields on the hawkish ECB inference are driving financials higher,” Stephen
Innes, head of currency trading for Asia Pacific at Oanda, said in a note to
clients.
“And while interest rates are usually a negative for equity markets,
investors are viewing higher interest rates in a favourable light,” he said.
The dollar weakened to 110.13 yen in early Asian trade from 109.79 yen
reflecting expectations for the ECB’s policy normalisation, dealers said.
“Rallies on Wall Street and the dollar-yen that made a breakthrough at the
110 yen mark are supporting the Japanese stocks market,” Okasan Online
Security said in a commentary.
In Tokyo, automakers were among gainers, with Toyota rising 1.36 percent
to 7,576 yen, Honda trading up 1.05 percent at 3,547 yen and Nissan up 0.77
percent at 1,100 yen.
Sumitomo Metal Mining rallied 3.61 percent to 4,695 yen after a brokerage
firm upgraded their estimate of the value of the shares.
Banks also gained, with Mitsubishi UFJ rising 2.25 percent to 688.1 yen
and Sumitomo Mitsui Financial up 1.41 percent at 4,646 yen.
On Wall Street, the Dow and the Nasdaq closed at a record high for the
third straight session after the ECB comments.
BSS/AFP/HR/0935