Tokyo stocks open higher on cheap yen, rallies in US

Tokyo, Nov 27 (AFP/APP): Tokyo stocks opened higher on Wednesday as investors took heart from a cheaper yen against the dollar and rallies on Wall Street with continued focus on developments in the US-China trade talks.

The benchmark Nikkei 225 index climbed 0.40 percent, or 93.68 points, to 23,467.00 in early trade, while the broader Topix index was up 0.32 percent, or 5.43 points, at 1,711.14.

“Japanese shares are supported by record highs in US shares and by the dollar-yen rate hovering around the 109.00-50 yen levels,” Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.

But the brokerage firm also noted that the upside will be limited unless “clear progress in the external environment emerges”, a reference to the US-China trade talks.

“US-China trade news… (is) still dominating headlines, but markets are becoming desensitised amid a lack of concrete new news,” Rodrigo Catril, senior strategist at National Australia Bank, said in a note.

Tokyo stocks open higher on trade deal optimism

The dollar fetched 109.10 yen in early Asian trade, against 109.04 yen in New York and 109.00 yen in Tokyo on Tuesday.

On Tuesday, Chinese Vice Premier Liu He spoke by phone to US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, state media said.

The two sides “discussed solving issues regarding each other’s core concerns, reached consensus on properly resolving related issues, and agreed to maintain communication on remaining issues in consultations on the ‘phase one’ deal”, China’s official Xinhua news agency said, without providing more details.

US President Donald Trump also suggested there was progress, saying “we’re in the final throes of a very important deal”.

In Tokyo, steel makers were among the winners, with Nippon Steel advancing 0.74 percent to 1,629.5 yen and JFE Holdings trading up 0.94 percent at 1,389 yen.

Electronics were mostly higher, with Fujitsu gaining 0.95 percent to 9,895 yen, TDK trading up 1.29 percent at 11,800 yen, Panasonic up 0.57 percent at 986.6 yen and Sharp climbing 0.59 percent to 1,683 yen.

On Wall Street, the Dow ended up 0.2 percent at 28,121,68.