Tokyo's Nikkei opens higher with eyes on US stimulus

The Nikkei 225 index rose 67.27 points or 0.29 per cent to 23,316.88 in early trade, while the broader Topix index fell 2.78 points or 0.17 per cent to 1,621.37. — Reuters pic
The Nikkei 225 index rose 67.27 points or 0.29 per cent to 23,316.88 in early trade, while the broader Topix index fell 2.78 points or 0.17 per cent to 1,621.37. — Reuters pic

TOKYO, Aug 14 ― Tokyo's benchmark Nikkei index opened higher today with investors expected to adjust their positions after recent rallies as they monitor stalled talks in the US over fresh stimulus.

The Nikkei 225 index rose 67.27 points or 0.29 per cent to 23,316.88 in early trade, while the broader Topix index fell 2.78 points or 0.17 per cent to 1,621.37.

“The Tokyo market will likely be buoyant but is expected to see a mix of both selling and buying,” Okasan Online Securities said in a note.

“There will be an adjustment from recent days of gains while talks have stalled in the United States over additional economic stimulus,” discouraging players, it added.

“These factors make it difficult to encourage aggressive buying.”

Technical charts still suggest room for Tokyo shares to rise further, the brokerage added. But the market has in the past faced strong resistance around the current range, Okasan said.

“Japanese shares have gained for three straight days on the back of strong US shares. Market sentiment has improved,” Okasan said.

“US shares (overnight) were only so-so, but the dollar around 107 yen should provide support,” it said.

On Wall Street, the Nasdaq ended 0.3 per cent up, but the Dow gave up 0.3 per cent while the S&P 500 fell 0.2 per cent.

The dollar stood at ¥106.98 (RM4.20), up from ¥106.91 in New York yesterday.

Among major shares in Tokyo, Sony added 1.21 per cent to ¥8,805. Industrial robot maker Fanuc rose 0.57 per cent to ¥19,550. Pharmaceutical firm Daiichi Sankyo jumped 1.81 per cent to ¥9,879.

SoftBank Group lost 1.39 per cent to ¥6,334, while Toyota fell 0.81 per cent to ¥7,226.

Mitsubishi UFJ Financial Group fell 1.20 per cent to ¥435.5. ― AFP

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