TOKYO, Japan (AFP) — Tokyo shares opened higher Tuesday as the yen’s fall boosted exporters including Toyota and Panasonic, while markets awaited Federal Reserve chair Janet Yellen’s speech later in the day.
Tokyo’s benchmark Nikkei 225 index rose 0.46 percent, or 92.01 points, to 20,245.36 in morning trading, while the Topix index of all first-section issues gained 0.45 percent, or 7.31 points, to 1,619.52 yen.
In currency markets, the dollar firmed to 111.92 yen, against 111.89 yen in New York and 111.31 yen in Tokyo earlier Monday.
A weaker yen is a plus for shares of Japan’s exporters as it boost their profit outlook.
“Investors are cheering the yen’s fall… and should lift the Nikkei average particularly during early trade,” Okasan Online Securities said in a commentary.
“However, the market lacks cues, particularly domestic ones, to encourage trading. Many investors want to see (Fed) Chair Yellen’s speech tonight (in London).”
Toshiba fell 1.41 percent to 294 yen, after Japan’s influential Nikkei business daily said the firm was set to ink a deal to sell its prized memory chip business as early as Tuesday.
A consortium of Japanese, South Korean and US investors is reportedly going to buy the division for some 2.0 trillion yen ($18 billion).
Toshiba has decided to sell the profitable unit to rebuild itself after taking massive losses in its US nuclear operations which have raised doubts about its future.
Exporters benefited as the yen drifted lower.
Toyota rose 0.58 percent to 5,872 yen, Panasonic was up 1.43 percent to sit at 1,561 yen and Canon firmed 0.41 percent to 3,921 yen.
Fast Retailing, operator of Uniqlo casual fashion brand, rose 1.32 percent to 37,540 yen.
© Agence France-Presse
