Japanese shares opened 0.25 per cent higher today after US stocks gained on strong corporate earnings and signs that Europe is making progress in tackling the eurozone debt crisis.
The Nikkei index of the Tokyo Stock Exchange rose 22.45 points to 8,866.43 in the first minutes of trade.
“The market is apparently moving back towards risk- taking,” Mr Tsuyoshi Segawa, equity strategist at Mizuho Securities, said.
Amid optimism that EU leaders were moving ahead with a comprehensive deal to stabilise the eurozone, US shares were also pushed higher overnight by solid US corporate earnings results.
Shares in Caterpillar, the world’s leading manufacturer of heavy construction and mining equipment, surged 5.0 per cent after reporting a 44 per cent profit rise on robust revenues. It raised full-year estimates to the top end of its prior forecast.
Often considered a bellwether of the global economy, Caterpillar said it had its best-ever quarter for sales and an order backlog at an all-time high.
The dollar was trading at 76.15 yen, near its record low against the Japanese unit, compared with 76.07 in New York late yesterday.
The yen hit a fresh record of 75.78 to the dollar during New York trade on Friday. The yen’s continued strength hurts Japan’s exporters.
But Japanese exporter stocks are not likely to be adversely impacted as they have weathered the strong yen trend for the past several months, Mr Segawa said.
Hong Kong shares too opened 0.51 per cent higher today following a rally on Wall Street amid confidence eurozone leaders will agree a deal to tackle the debt crisis.
The benchmark Hang Seng Index added 95.69 points to 18,867.51 in the first minutes of trade.