Tokyo: Stocks open higher ahead of BoJ meeting

[TOKYO] Tokyo stocks opened higher on Monday in cautious trade ahead of the Bank of Japan's policy decision later in the day, with additional asset-purchasing widely expected.

The benchmark Nikkei 225 index was up 0.89 per cent or 171.27 points at 19,433.27 in early trade, while the broader Topix index edged up 0.47 per cent or 6.75 points to 1,428.04.

"Japanese stocks this week will move one step forward and one step back, ahead of a set of holidays" called Golden Week, Okasan Online Securities said in a commentary.

Investors were closely watching the Bank of Japan's policy board decision later in the day, which is widely expected to unveil additional easing, analysts said.

Investors are adopting a "wait-and-see attitudes ahead of a government decision" on whether to extend a state of emergency past May 6, with expectations for at least some extension, Okasan Online added.

In Tokyo, some high-tech shares were higher, with industrial robot maker Fanuc surging 9.22 per cent to 16,225 yen and chip-testing equipment manufacturer Advantest rallying 5.23 per cent to 5,030 yen, after they both reported better-than-expected fourth-quarter operating profits.

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Sony was up 1.03 per cent at 6,775 yen and Canon was 1.84 per cent higher at 2,157 yen.

Banks were lower on reports the Bank of Japan would boost asset-purchasing programme to keep low interest rates, with Sumitomo Mitsui Financial down 0.59 per cent at 2,703.5 yen.

The dollar was trading at 107.47 yen in early Asian trade, against 107.46 yen in New York late Friday.

On Wall Street, cautious optimism propelled US stocks to a positive finish on Friday, with the Dow ending up 1.1 per cent at 23,775.27.

AFP