Tokyo stocks open higher on hopes for China trade deal

Tokyo, Oct 28 (AFP/APP): Tokyo stocks opened higher on Monday tracking rallies on Wall Street following upbeat comments from US trade officials about progress in talks with China.

The benchmark Nikkei 225 index was up 0.28 percent or 62.78 points at 22,862.59 in early trade, while the broader Topix index was up 0.15 percent or 2.45 points at 1,650.89.

“US indexes rallied on the backdrop of brisk corporate earnings and progress in the US-China trade talks,” Hirokazu Kabeya, chief global strategist at Daiwa Securities, said.

The Japanese market got a tailwind from the rallies in US shares, analysts said.

The focus this week includes China’s manufacturing PMI data due on Thursday, as investors are watching the extent of impact from the trade war with the US, Kabeya said.

Investors are also closely watching the US Federal Reserve’s policy decision on Wednesday and the Bank of Japan’s policy decision on Thursday, he added.

Tokyo’s Nikkei index after US-China deal

The dollar fetched 108.73 yen in early Asian trade, against 108.67 yen in New York late Friday.

In Tokyo, Canon was down 0.13 percent at 2,946 yen ahead of its third quarter earnings report to be released after the market close later in the day.

Industrial robot maker Fanuc was up 1.53 percent at 21,530 yen ahead of its second quarter earnings report also due after the market close.

Other China-linked shares were also higher, with electronic parts maker Rohm trading up 1.49 percent at 8,800 yen and construction machine maker Komatsu up 1.35 percent at 2,586.5 yen.

On Wall Street, the Dow ended up 0.6 percent at 26,958.06.

Tokyo stocks open higher on cheap yen