Tokyo stocks open higher on trade deal hopes

Tokyo, Dec 5 (AFP/APP): Tokyo stocks opened higher on Thursday after US stocks rallied on upbeat reports about US-China trade talks that offset lacklustre US economic data.

The benchmark Nikkei index climbed 0.78 percent or 180.89 points to 23,316.12 in early trade while the broader Topix index was up 0.58 percent or 9.91 points at 1,713.18.

“Japanese shares are seen rebounding encouraged by rallies in US stocks and a lull in the appreciation of the yen,” Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.

The market is rebounding due to “expectations for a US-China deal on trade”, he said.

Citing people familar with the talks, Bloomberg News said US negotiators saw a deal being finalised before US tariffs against China are due to rise on December 15.

The dollar fetched 108.85 yen in early Asian trade, against 108.88 yen in New York.

In Tokyo, some major electronics manufacturers were higher, with Panasonic gaining 1.35 percent to 1,048.5 yen and Sony trading up 0.80 percent at 7,155 yen.

Oil-linked shares and commodities were also higher reflecting a rebound in global stocks, with Japan Petroleum Exploration jumping 3.26 percent to 2,939 yen, crude oil developer and distributor Inpex climbing 2.17 percent to 1,080 yen, and Sumitomo Metal Mining advancing 1.47 percent to 3,297 yen.

On Wall Street, the Dow ended up 0.5 percent at 27,649.78.