TOKYO, Japan (AFP) — Tokyo stocks opened higher on Monday in position-adjustment after investors sold heavily Friday in the wake of Barcelona’s deadly attack and amid concerns over United States President Donald Trump’s economic agenda.
The benchmark Nikkei 225 index gained 0.16 percent, or 30.37 points, to 19,500.78 in the first few minutes of trade while the Topix index of all first-section issues was up 0.19 percent, or 2.98 points, at 1,600.34.
Global stock markets sank Friday as traders sought safe-haven investments such as gold following a terror attack in Barcelona that sent airline share prices down.
“Japanese shares may rebound as they were sold too much” over concerns about US politics, Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Institute, told Bloomberg News.
The dollar fetched 109.21 yen in early Asian trade, against 109.22 yen late Friday.
The deadly attack Thursday in the Spanish city compounded investor concerns over economic policy paralysis in Washington.
Wall Street stocks closed lower for the second day Friday, after making a brief try at a rebound, with the Dow Jones Industrial Average falling 0.35 percent to 21,674.51.
Investors remained concerned about US President Donald Trump’s agenda for tax reform and other pro-business measures, as his support from corporate America has evaporated following his heavily criticised response to a white supremacist rally in Virginia last weekend, analysts said.
“We need to pay attention to similar risks this week,” Okasan Online Securities said in a commentary, adding US Federal Reserve-linked events this week are in focus.
It could be a good opportunity for bargain hunting if companies with good profitability dip temporarily on a higher yen, it added.
Hirakawa of Tokai Tokyo Research Institute added that “North Korea may launch missiles today or tomorrow and concerns will remain until September 9, the day of state foundation” in the isolated country.
Pyongyang carried out its fifth nuclear test on September 9 last year.
Game giant Nintendo rose 0.14 percent to 36,170 yen and Panasonic was up 0.27 percent at 1,465 yen.
Banks were lower, with Mitsubishi UFJ slipping 0.60 percent to 675.3 yen and its rival Sumitomo Mitsui Financial losing 0.31 percent to 4,084 yen.
© Agence France-Presse
