TOKYO: Tokyo shares opened marginally higher Friday as the yen remained weak on expectations of higher interest rates in the United States.
The gains came as Wall Street retreated from a torrid run spurred by hopes for President Donald Trump’s stimulative economic policies.
The dollar has been rising on expectations of higher US interest rates after a recent string of hawkish comments by Federal Reserve policy-makers.
The greenback changed hands at 114.33 yen Friday, and though slightly lower than 114.39 late in New York on Thursday, was still higher than 114.21 in Tokyo earlier that day.
A weaker yen tends to boost the shares of Japanese exporters as it helps their bottom line.
Japan’s benchmark Nikkei 225 index gained 0.11 percent, or 21.15 points, to 19,585.95 in early trading, while the Topix index of all first-section shares was up 0.01 percent, or 0.23 points, at 1,564.92.
“In the absence of any policy clarity from the US administration, the FOMC will continue to be the dominant dollar driver,” Stephen Innes, a senior trader at OANDA, said, referring to the Federal Reserve’s rate-setting Federal Open Market Committee.
“The market is left pondering if the hawkish lean from the voting dove members is a signal that the Fed will accelerate the pace of tightening after March, which could add to further dollar strength over the near term,” he said in a commentary.
Though US stocks have risen dramatically on optimism over Trump’s plans for massive infrastructure spending and tax cuts some investors have expressed concern about a lack of detail in the plans.
Weakness in energy and financial shares pushed Wall Street lower on Thursday.
The Dow Jones Industrial Average dropped 0.5 percent to close at 21,002.97 after breaking through 21,000 for the first time Wednesday.
In Tokyo trading, Nintendo jumped 3.78 percent to 23,740 yen as its new console went on sale with hundreds of gamers queueing up outside retail stores in Tokyo.
Rival Sony, meanwhile, rose 1.25 percent to 3,628 yen.
Market heavyweight Fast Retailing, the operator of Uniqlo clothing outlets, rose 2.71 percent to 37,490 yen.
