Tokyo Shares Open Higher on US Tax Cut Hopes

   •    Jumat, 21 Apr 2017 09:36 WIB
stock market (en)
Tokyo Shares Open Higher on US Tax Cut Hopes
Tokyo shares open higher on US tax cut hopes, BoJ easing (Photo: AFP)., Tokyo: Tokyo shares opened higher Friday, buoyed by fresh hopes for US tax cuts and comments from Japan's top central banker that monetary easing would be in place for some time.
The benchmark Nikkei 225 rose 0.83 percent, or 153.89 points, to 18,584.38 in early trading, while the Topix index of all first-section issues rose 0.84 percent, or 12.38 points, to 1,485.19.
That followed a strong session on Wall Street where the Nasdaq closed at a fresh record on upbeat corporate earnings and US Treasury Secretary Steven Mnuchin expressing confidence in enacting tax cuts this year.
Bank of Japan governor Haruhiko Kuroda reiterated that the BoJ's massive monetary easing campaign -- aimed at stoking the economy and defeating deflation -- would remain in effect for the foreseeable future.
His comments in Washington ahead of G20 talks pushed down the yen in Asian trading, which is a plus for Japanese shares as it inflates exporters' overseas profits.
"It looks like the Trump administration wants to reignite the market's expectations for policies," Hideyuki Ishiguro, a senior strategist at Daiwa Securities, told Bloomberg News.
"Kuroda's comments didn't diverge from his past stance, but since the yen had strengthened a fair amount it became a trigger for some profit-taking."
On forex markets, the dollar bought 109.36 yen, up from 109.31 yen seen in New York and below 109 in Asia earlier in the day.
In share trading, Toyota rose 1.22 percent to 5,824 yen and Sony added 0.39 percent to sit at 3,585 yen.
Bank Mitsubishi UFJ Financial Group tacked on 1.77 percent at 678.4 yen and brokerage Nomura Holdings jumped 2.07 percent to 666.5 yen.
FujiFilm, however, fell 3.83 percent to 3,996 yen, after announcing it was delaying the release of annual earnings announcement pending the results of a probe into possible accounting problems at a New Zealand subsidiary.
The news raised concerns after Toshiba delayed its quarterly earnings announcement several times as it struggled to deal with massive losses at its US nuclear unit Westinghouse.