Tokyo stocks open higher on easing trade fears

TOKYO: Tokyo stocks opened higher on Thursday, boosted by signs of easing in US-China trade tensions and robust Japanese economic data.

The benchmark Nikkei 225 index gained 0.80%, or 179.80 points, to 22,784.41 in early trade while the broader Topix index was up 0.92%, or 15.49 points, at 1,706.81.

“There is a growing possibility that the US-China trade row will move in a positive direction,” said Makoto Sengoku, market analyst at Tokai Tokyo Research Institute.

The Wall Street Journal said Wednesday that Washington had proposed a fresh round of trade talks with Beijing to tackle problems before the Trump administration slaps more tariffs on Chinese imports.

“At least for now, it’s a good sign. The worst thing would be not to talk anymore,” Sengoku told AFP.

Investor sentiment also got a boost from strong July machinery orders data, which showed a bigger-than-expected jump of 11.0% from the previous month, Sengoku said.

In individual stocks trade, Nintendo rose 1.19% to ¥39,810 (RM1,481) and IT investor SoftBank Group climbed 2.47% to ¥10,755.

Factory robot maker Fanuc rose 2.15% to ¥21,340.

The dollar firmed to ¥111.37 from ¥111.25 in New York Wednesday afternoon.