TOKYO, Japan (AFP) – Tokyo stocks opened higher on Thursday as exporters received a boost from a weaker yen against the dollar after the US Federal Reserve kept alive the chance of a December interest rate hike.
The bellwether Nikkei 225 index rose 0.80 percent, or 162.10 points, to 20,472.56 in early trade while the broader Topix index was up 0.70 percent, or 11.62 points, at 1,679.54.
The US central bank concluded a two-day meeting by announcing it would keep interest rates unchanged and begin to unwind a crisis-era stimulus program, both moves that markets expected.
News that the Fed appeared likely to go ahead with a third interest rate hike in December boosted bank shares on Wall Street and sent the dollar up against the yen.
In early Asian trade, the dollar fetched 112.59 yen, up from 112.15 yen in New York.
Analysts said a cheaper yen was supporting Japanese shares, as it makes exporters’ goods more competitive in foreign markets.
The Fed’s announcement “confirmed its stance that it would keep tightening policies gradually,” said Masayuki Kubota, chief strategist at Rakuten Securities, in a note to clients.
“When US yields are higher, Japanese shares tend to rally,” he said.
In Tokyo trade, blue-chip exporters were higher, with Panasonic trading up 0.84 percent at 1,679 yen, Hitachi up 0.64 percent at 799.1 yen and Toyota 0.86 percent at 6,761 yen.
Bank stocks also rallied in Tokyo on expectations of sound earnings for financials.
Mitsubishi UFJ was up 1.86 percent at 720.5 yen and its rival Sumitomo Mitsui Financial was up 1.07 percent at 4,313 yen. (Agence France-Presse)
