TOKYO, Dec 12 ― Tokyo stocks opened higher today after the US Federal Reserve left interest rates unchanged, with expectations that the central bank will continue to leave the low rate in place.
The benchmark Nikkei 225 index was up 0.24 per cent or 55.67 points at 23,447.53 in early trade, while the broader Topix index edged up 0.24 per cent or 4.04 points to 1,718.99.
“Japanese shares are supported by a sense of relief after the Fed suggested keeping its low-interest rate policy,” Okasan Online Securities chief strategist Yoshihiro Ito said in a commentary, adding that traders are still eyeing US-China trade talks.
The dollar fetched ¥108.50 in early Asian trade, against ¥108.56 in New York and ¥108.73 in Tokyo yesterday.
Fed chief Jerome Powell “would need to see a significant move up with inflation, something it seems we are nowhere near,” to justify changing rates, said Edward Moya, senior market analyst at Oanda.
He said the dollar declined on expectations a rate hike would not happen in the near future.
In Tokyo, chip-linked shares were higher, with semiconductor-testing equipment maker Advantest climbing 1.85 per cent to ¥5,480 and chip-making equipment manufacturer Tokyo Electron rallying 2.43 per cent to ¥22,995.
Sony was up 0.69 per cent at ¥7,269 and Sharp was up 1.19 per cent at ¥1,690.
On Wall Street, the Dow ended up 0.1 per cent at 27,911.30. ― AFP
