TOKYO, Nov 30 — Tokyo shares opened higher today with investors heartened by a weaker yen as the dollar rose on strong US economic data.
Government figures showed stronger-than-expected third quarter growth, higher housing prices in September and a sharp rebound in consumer confidence in November.
“Good data coming out of the US is positive for Japanese stocks,” said Chihiro Ohta, a senior strategist at SMBC Nikko Securities Inc.
“When the US economy is doing well, its a tailwind for Japanese exporters,” he told Bloomberg News.
A weaker yen also boosts export profits when they are repatriated.
The benchmark Nikkei 225 index gained 0.30 per cent, or 55.20 points, to 18,362.24 in the first few minutes of trade while the Topix index of all first-section issues was up 0.25 per cent, or 3.72 points, at 1,472.29.
The dollar was changing hands at 112.50 yen early this morning, up from 111.99 yen in Asian trade yesterday.
Currency rates hardly moved immediately after the release of Japanese data that showed the nation’s factory output inched up by 0.1 per cent month-on-month in October.
Investors are now waiting for developments at a Vienna meeting of the Organisation of Petroleum Exporting Countries later today.
Players are waiting to see if the cartel can agree to reduce output, forcing prices up and reversing the long squeeze on producers. — AFP