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Tokyo stocks open higher on US rallies, cheaper yen

Tokyo stocks opened higher on Wednesday as investors took heart from a strong showing on Wall Street and a cheaper yen against the dollar.

The benchmark Nikkei 225 index was up 1.38 percent or 308.50 points at 22,634.11 in early trade, while the broader Topix index climbed 1.12 percent or 17.74 points to 1,605.42.

“A cheaper yen against the dollar is a tailwind for Japanese shares, supporting exporters,” said Okasan Online Securities.

“Expectations for additional easing by the European Central Bank is growing” ahead of their meeting in Frankfurt on Thursday, which is also giving the Tokyo market some momentum, the analysts added.

Economists expect the ECB to announce hundreds of billions of euros in new bond-buying to keep fighting the pandemic crisis.

The dollar fetched 108.81 yen in early Asian trade, against 108.69 yen in New York, and 107.70 in Asian afternoon trade on Wednesday.

In Tokyo, major shares were higher across the board, with Uniqlo casual wear operator Fast Retailing climbing 3.50 percent to 63,910 yen, Sony trading up 1.58 percent at 7,246 yen and Toyota stronger by 1.96 percent at 6,907 yen.

On Wall Street, the Dow ended up 1.1 percent at 25,742.65.

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