ZCZC
BCN-03
STOCKS-MARKETS-JAPAN-OPEN
Tokyo stocks open higher as yen eases
TOKYO, Jan 26, 2018 (BSS/AFP) – Tokyo stocks opened higher on Friday after
US President Donald Trump said he favours a strong dollar, sending the
Japanese currency lower against the greenback, a move positive for Japanese
exporters.
The benchmark Nikkei 225 index rose 0.40 percent, or 95.03 points, to
23,764.52 in early trade while the broader Topix index was up 0.26 percent,
or 4.91 points, at 1,889.47.
The dollar gyrated Thursday on President Donald Trump’s comments favouring
a strong US currency, while European and Asian equity bourses retreated as
their currencies gained ground.
One day after US Treasury Secretary Steven Mnuchin seemed to embrace a
cheap US currency, Trump told CNBC Mnuchin’s remarks had been taken out of
context, and restated the traditional US policy.
“Ultimately, I want to see a strong dollar,” Trump said, sparking a rally
for the US currency, which had hit a three-year low against the euro earlier
in the day.
In early Asian trade, the dollar fetched 109.66 yen, up from 109.44 yen in
New York, extending the upward trend for the dollar after Trump spoke.
The halt in the yen’s appreciation thanks to Trump’s comments “is being
favoured by the market,” said Yoshihiro Ito, chief strategist at Okasan
Online Securities, in a commentary.
“But the Nikkei index would be range-bound ahead of US economic indicators
and the start of corporate earnings season in Japan,” he added.
In the United States, the GDP growth rate for the fourth quarter and
durable goods orders are due later Friday.
On the Tokyo Stock Exchange, blue-chip exporters showed gains, with
Nintendo up 1.42 percent at 48,450 yen and Sony up 2.50 percent at 5,380 yen.
Suzuki Motor dropped 4.04 percent to 6,150 yen after its Indian unit
reportedly approved a change in the way it calculates royalties that will
result in lower payments for new models.
In New York, the Dow and S&P 500 finished at records following mostly
strong earnings, while the tech-rich Nasdaq again slipped as market insiders
debated whether the rally is losing steam.
BSS/AFP/RY/08:50 hrs