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Tokyo stocks open higher on yen's fall, higher U.S. stocks.

TOKYO, May 30 Kyodo

Tokyo stocks opened higher Friday, aided by the U.S. dollar's rise to the mid-105 yen level and extended gains on Wall Street.

In the first 15 minutes of trading, the 225-issue Nikkei Stock Average rose 167.25 points, or 1.18 percent, from Thursday to 14,291.72. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 20.57 points, or 1.49 percent, to 1,401.20. The Second Section gained ground.

The Tokyo market opened on a firm tone, tracking overnight gains in U.S. shares that came amid easing worries about inflation and recession on a drop in crude oil futures and an upward revision of U.S. gross domestic product data for the first quarter.

The dollar's recent rises against the yen were also supportive for export-oriented shares like high-tech and vehicle companies, as a higher dollar against the yen expands Japanese exporters' overseas profits when they are brought home.

The dollar was changing hands at around the mid-105 yen level in early morning trading in Tokyo, up from the lower 105 yen level late Thursday here.

In addition to export-oriented shares, major gainers in early deals included the banking, rubber, insurance and construction sectors.

Shortly before the market opened, the government released a batch of key economic indicators, including consumer price and industrial production data for April, which roughly met market expectations.

According to the government reports, Japan's key consumer price index rose 0.9 percent in April from a year earlier, compared with 1.0 percent growth forecast on average by economists surveyed by Kyodo News.

Japan's industrial output fell a seasonally adjusted 0.3 percent in April from the previous month, compared with a dip of 0.2 percent projected in the Kyodo survey.
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Publication:Japan Weekly Monitor
Date:Jun 2, 2008
Words:303
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