Tokyo stocks open higher with eyes on politics

TOKYO: Tokyo stocks opened higher on Friday, shrugging off falls on Wall Street, with investors focused on Japanese politics after Prime Minister Yoshihide Suga announced he will not seek re-election.

The benchmark Nikkei 225 index was up 0.35 percent, or 105.78 points, at 30,113.97 in early trade, while the broader Topix index edged up 0.29 percent, or 5.96 points, to 2,070.89.

"Despite some selling pressure due to falls in US shares, expectations for a new government and declines in new virus cases in Japan are prompting purchases," Mizuho Securities said in a note.

Tokyo shares close lower

The dollar fetched 109.73 yen in early Asian trade against 109.72 yen in New York late Thursday.

Among major shares in Tokyo, SBI Holdings rallied 4.99 percent to 2,946 yen in early trade following a report it will make a tender offer for Shinsei Bank.

Trade in Shinsei Bank shares was suspended following the report.

Upwards assessments by brokerage houses sent shares in trading house Itochu up 1.77 percent to 3,512 yen and issues of chip-maker Renesas up 3.87 percent at 1,343 yen.

Some other exporters were higher, with Hitachi trading up 0.47 percent at 6,584 yen, Japan Steel advancing 0.67 percent to 2,321 yen, and Canon 0.87 percent higher at 2,712.5 yen.

Tokyo Electric (TEPCO) dropped 4.97 percent to 306 yen and Kansai Electric was off 1.12 percent at 1,107.5 yen ahead of expected announcement later in the day by Taro Kono, who is minister for administrative reform, that he will join a race for the ruling party's leadership election.

Kono is expected to back green reforms that have some utilities concerned.

However both utilities rallied in the previous session after Kono -- who has previously backed scrapping nuclear energy -- said he recognises the need to keep existing nuclear plants open for now.