Tokyo shares opened higher on Friday, following rises in European and US and markets after the European Central Bank extended its stimulus program beyond March.
European stocks rose Thursday as investors cheered dovish aspects of the European Central Bank’s decision, including the extension of its bond-purchase program until December 2017, reports BSS.
In New York, the Dow, the S&P 500 and the Nasdaq all shot up to fresh records,as the action added to positive sentiment that has already pushed Wall Street indices to a string of records following the business-friendly Republican sweep in the November 8 US election.
“The latest move by the ECB signals easy monetary policy for a sustained period,” Juichi Wako, a senior strategist at Nomura Holdings Inc., told Bloomberg News.
The benchmark Nikkei 225, which posted this year’s best close on Thursday,added 0.32 percent, or 60.95 points, to 18,826.42 in the first few minutes of trade. The broader Topix index of all first-section issues was up 0.04 percent,or 0.63 points, to 1,513.32. Japanese shares also got support from higher US bond yields and a strong dollar.
“A rise in US interest rates, backed by an economic recovery, should be good for Japanese banks that operate internationally, while the yen hovering around 114 to the dollar provides relief,” Wako said.
The dollar firmed to 114.20 yen early Friday from 113.95 yen in New York Thursday afternoon. A weaker yen is positive for the Japanese stock market as it increases the profitability of exporters.
