Tokyo stocks open higher after rebound in US shares

22 May 2019 / 09:23 H.

TOKYO: Tokyo stocks opened higher on Wednesday following a rebound on Wall Street after the United States said it would delay a ban on Chinese telecom giant Huawei.

The benchmark Nikkei 225 index was up 0.44%, or 93.01 points, at 21,365.46 in early trade, while the broader Topix index was up 0.36%, or 5.51 points, at 1,555.81.

US shares gained ground following two straight losing sessions, with tech companies leading after the US Commerce Department announced it would delay implementation of a ban on Huawei for 90 days to allow companies to adjust operations and avoid disruption.

On Wall Street, the Dow ended up 0.8% at 25,877.33 while the tech-heavy Nasdaq rallied 1.1%.

Investors took heart “especially from the halt in falls on the Nasdaq index ... and today chip-related shares are seen rebounding,“ Okasan Online Securities said in a commentary.

A relatively cheaper yen against the dollar is also supporting the Japanese market, it noted.

The dollar fetched 110.59 yen in early Asian trade, against 110.50 yen in New York and 110.15 yen in Tokyo on Tuesday.

In Tokyo, chip-testing equipment maker Advantest was up 1.05% at 2,789 yen and chip-making equipment manufacturer Tokyo Electron was up 0.12% at 15,440 yen.

Minicar specialist Suzuki dropped 3.63% to 5,219 yen after reports that its Indian unit Maruti Suzuki is facing probes by Indian anti-monopoly authorities over allegations of breaching anti-monopoly rules. — AFP

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