Tokyo stocks open higher with eyes on BoJ meet


TOKYO: Tokyo stocks opened higher on Friday with a cheaper yen supporting the market, as investors awaited the Bank of Japan’s policy board decision later in the day.

The Nikkei 225 index added 0.62%, or 130.98 points, to 21,418.00 in early trade, while the broader Topix index was up 0.55%, or 8.80 points, at 1,597.09.

Investors were awaiting the Bank of Japan’s monetary policy decisions later on the day, “as there is a view that the Bank may revise down part of its assessment of the economy even though the monetary policy itself is expected to be unchanged”, said Toshiyuki Kanayama, senior market analyst at Monex.

The dollar fetched 111.77 yen in early Asian trade, up slightly from 111.65 yen in New York and 111.58 yen in Tokyo on Thursday.

Wall Street shares ended mixed but the changes were limited as investors fretted about the slackening momentum in US-China trade talks while British lawmakers voted to delay the exit from the EU, a move largely expected by market participants.

US President Donald Trump said Thursday that trade war negotiations with China should wrap up within four weeks and expressed optimism about striking a deal, saying “we are doing very well with China talks”.

Despite Trump’s upbeat assessment, the two sides continue to lock horns on the hugely complex dispute between the world’s two biggest economies.

In Tokyo, Toyota was up 1.02% at 6,610 yen after it announced it will boost its planned US investment by US$3 billion to US$13 billion (RM12.3 billion to RM53.2 billion) over five years to boost manufacturing in multiple states.

Its rival Honda was up 1.29% at 3,062 yen while Nissan was up 1.05% at 940.7 yen.

China-related shares were also higher, with construction machinery maker Komatsu trading up 1.33% at 2,661.5 yen and industrial robot maker Fanuc rallying 1.28% to 18,870 yen.

In New York, the Dow was barely changed at 25,709.94 at the close while the broader S&P 500 ended down 0.1% at 2,808.48. — AFP



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