Tokyo: Tokyo stocks opened higher on Friday, underpinned by gains on Wall Street and investor confidence in corporate earnings, as well as expectations of a positive tone at a landmark inter-Korean summit.
The benchmark Nikkei 225 index rose 0.74 percent or 165.09 points to 22,484.70 in early trade while the broader Topix index was up 0.46 percent or 8.23 points at 1,780.36.
“US stocks advanced while many Japanese companies are expected to report good earnings results,” said Makoto Sengoku, market analyst at Tokai Tokyo Research Institute.
Wall Street stocks jumped Thursday after blowout earnings from Facebook ignited a rally in shares of large technology companies.
Expectations are also high in Japan as major Japanese firms report results in the coming weeks.
But, Sengoku added, gains on Friday would be capped due to the start of the Golden Week vacation period in Japan.
Tokyo markets are open only on Tuesday and Wednesday next week.
Investors also expect a positive result from a historic summit between North Korean leader Kim Jong Un and President Moon Jae-in of South Korea.
The two leaders exchanged a warm handshake over the demarcation line that divides their countries.
“Of course we should always be on guard for a negative development… but as far as we can tell from the recent remarks by North Korea, the summit will be reconciliatory,” Sengoku told AFP.
The Bank of Japan is to wrap up a two-day policy meeting Friday but it is widely expected to stand pat.
The dollar was trading at 109.30 yen against 109.34 yen in New York Thursday afternoon, hardly reacting to solid Japanese production data released early Friday.
In trade in individual stocks, Nintendo climbed 1.60 percent to 46,160 yen after it announced robust annual earnings.
Industrial robot maker Fanuc plunged 11.19 percent to 23,075 yen after announcing its net profit would sink in the current year.
AFP