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Tokyo stocks open higher as trade worries ease
TOKYO, Aug 28, 2018 (BSS/AFP) – Tokyo stocks opened higher on Tuesday as
trade worries receded after the United States and Mexico announced a
breakthrough deal to rewrite a North American trade pact.
The benchmark Nikkei 225 index was up 0.69 percent or 157.07 points at
22,956.71 in early trade while the broader Topix index rose 0.69 percent or
11.88 points at 1,740.83.
US President Donald Trump and outgoing Mexican President Enrique Pena
Nieto hailed the new trade agreement, which raises hopes the North American
Free Trade Agreement can be salvaged after Canada rejoins the talks on
Tuesday.
The proposed new NAFTA deal includes provisions on auto trade, tougher
worker protections and a provision to review the deal every six years.
“Following the overall agreement between the US and Mexico, speculation
that the US may reach a deal with China would be a tailwind for Japanese
shares,” Yoshihiro Ito, chief strategist at Okasan Online Securities, said in
a commentary.
In Tokyo, Toyota was up 1.79 percent at 7,091 yen after it confirmed that
it will invest about $500 million into Uber as part of a deal to work
together on mass-producing self-driving vehicles.
Denso rose 2.05 percent to 5,376 yen and Aisin Seiki was up 2.35 percent
at 5,210 yen, after the two auto parts companies of Toyota group said they
will set up a joint venture with two other smaller firms aimed at developing
software for auto driving.
Other automakers were also higher, with Honda gaining 2.45 percent to
3,418 yen and Nissan advancing 2.16 percent to 1,061.5 yen in early trade.
Sony was up 1.28 percent at 6,249 yen and Panasonic was up 0.92 percent at
1,349.5 yen.
On Wall Street, the Dow closed up one percent at 26,049.64.
The dollar fetched 111.14 yen in early Asian trade, up modestly from
111.07 yen in New York.
BSS/AFP/MR/ 1010 hrs