TOKYO: Tokyo stocks opened higher on Tuesday, tracking gains in New York, supported by the stable dollar-yen rate and news that the UK and European Union have agreed a Brexit deal.
The benchmark Nikkei 225 index gained 1.11% or 234.57 points to 21,359.66 in early trade while the broader Topix index was up 0.97% or 15.29 points at 1,596.73.
“Japanese shares are rising, taking heart from rallies in the US. If there had not been the Boeing accident, US shares would have risen more,“ Kyoko Amemiya, senior market analyst at SBI Securities, told AFP.
The UK-EU deal announced a few hours before the opening bell “is also supporting the market“, she said.
Looking ahead, investors are watching economic indicators including Japan’s machinery orders “which often fluctuates” but “there is no huge negative factor expected“, she added.
British Prime Minister Theresa May said Monday she had secured a three-part package of changes from the EU to the terms of its withdrawal deal, hoping to win over sceptical MPs.
As May sealed the deal in Strasbourg with EU leaders, her de facto deputy, David Lidington, updated parliament in London on the plans.
He said this should be enough to persuade MPs to vote for the agreement on Tuesday, just 17 days before Britain is scheduled to leave the EU.
Three new documents have been agreed to run alongside the withdrawal agreement, which governs Britain’s exit terms, and the political declaration on future trade terms.
In Asia, the dollar fetched 111.34 yen against 111.23 yen in New York.
In Tokyo, automakers were among winners, with Toyota trading up 0.89% at 6,637 yen and Honda up 1.16% at 3,048 yen.
Nissan was up 0.91% at 930 yen and Mitsubishi Motors rallied 2.10% to 609 yen after a Japanese court barred former chairman Carlos Ghosn from attending a Nissan board meeting later on Tuesday.
Fast Retailing, the market heavyweight and Uniqlo casual wear operator, was up 0.91% at 52,920 yen. — AFP