Tokyo Stocks Open Higher With Eyes On Yen, China Data

Tokyo stocks opened higher on Tuesday, with a lull in the yen's appreciation against the dollar as investors awaited Chinese economic data due later in the day

Tokyo, (UrduPoint / Pakistan Point News - 17th Jan, 2023 ):Tokyo stocks opened higher on Tuesday, with a lull in the yen's appreciation against the dollar as investors awaited Chinese economic data due later in the day.

The benchmark Nikkei 225 index was up 0.38 percent, or 98.96 points, at 25,921.28 in early trade, while the broader Topix index added 0.18 percent, or 3.35 points, to 1,889.66.

The dollar fetched 128.40 yen in early Asian trade, against 128.55 yen in London and 127.64 yen in Tokyo late Monday.

"Japanese shares are seen making a sound start as the yen had a break in its appreciation," Monex senior market analyst Toshiyuki Kanayama said in a note.

Investors are closely watching China's GDP data for the October-December period and other figures including factory output, he added.

That data, however, was "unlikely to change views on China given the aggressive pivot towards 'living with Covid' that began in December," said senior strategist Ray Attrill of National Australia Bank in a commentary.

"The next few months are likely to see disruptions, but thereafter activity should rebound sharply, plus the government is committed to supporting growth and stabilising the property sector," he said.

Investors are also awaiting the Bank of Japan's policy board decision on Wednesday, which is "arguably the week's main event", he added.

Most BoJ watchers expect the central bank to keep its massive monetary easing intact, but speculation is growing that another tweak to its tools for controlling yields is possible after a surprise adjustment last month, which could send the yen higher against the dollar.

Overnight, world equities mainly rose on growing global optimism as inflation slows and China reopens. New York markets were shut for the Martin Luther King Jr. Day holiday.

In Tokyo, Toyota was up 1.84 percent at 1,851 yen after it said it was confident of a sharp upturn in production this year -- up to 10.6 million of its Toyota and Lexus brand vehicles -- although risks of supply disruptions remain, especially on semiconductors.

Its rivals were also higher, with Honda trading up 1.45 percent at 3,080 yen, and Nissan up 2.09 percent at 420.9 yen.

Panasonic was up 1.08 percent at 1,123 yen and Sony Group was up 0.92 percent at 10,955 yen.