Tokyo stocks open higher with eyes on US stiumuls package, coronavirus

Tokyo stocks opened higher on Monday with bargain-hunting purchases supporting the market, as investors closely watched developments over a fresh US stimulus package and the coronavirus pandemic.

The benchmark Nikkei 225 index was up 0.84 percent, or 197.03 points, at 23,607.66 in early trade, while the broader Topix index rose 0.75 percent, or 12.06 points, to 1,629.75.

"Japanese shares this week are seen trading positively even though uncertainties remain over additional US stimulus measures and increasing coronavirus infections in Europe... as individual investors' appetite for bargain-hunting is strong," Okasan Online Securities said in a commentary.

In the US, Democrats and Republicans have been negotiating on another stimulus package -- but growing signs that nothing would be approved before the November 3 election have sent indices lower in recent days.

US House Speaker Nancy Pelosi set a Tuesday deadline on White House stimulus negotiations, while "speaking over the weekend President Trump said he was prepared to go higher than the $1.8 trillion his team had been trying to offer Pelosi", Rodrigo Catril, senior strategist at National Australia Bank, said in a commentary.

"The problem is that even if the White House reaches an agreement with the Democrats, Senate Republicans remain opposed to a big package."

The dollar fetched 105.45 yen in early Asian trade, against 105.40 yen in New York late Friday.

In Tokyo, Sony was up 2.01 percent at 7,756 yen after a report said the Japanese electronics giant will supply its microdisplays to US titan Apple.

Among other major shares, Toyota was up 1.44 percent at 6,927 yen, Nippon Steel was up 1.41 percent at 1,081 yen, parts maker Rohm was up 1.20 percent at 8,430 yen and industrial robot maker Fanuc was up 2.66 percent at 20,615 yen.

Japan logged a trade surplus of 675 billion yen ($6.4 billion) in September, against market expectations of an 854.3 billion yen surplus, official data released by the finance ministry showed ten minutes before the opening bell.

On Wall Street, the Dow ended up 0.4 percent at 28,606.31.