Tokyo: Tokyo Nikkei opened slightly higher on Tuesday, rebounding from sharp drops the previous day, with investors apparently relieved that Wall Street eked out gains afer a volatile session.

The benchmark Nikkei 225 index rose 0.06 percent or 13.49 points to 21,232.99 in early trade while the broader Topix index was down 0.13 percent or 2.12 points at 1,587.69.

Wall Street fell sharply early Monday as the postponement of Britain's Brexit vote added to fears about a slowdown in the US economy and an escalation in trade tensions with China.

But a resurgence in technology shares lifted markets.

In Tokyo early morning trade, “buying will likely lead trade as sentiment improved on a small rebound in US stocks," Okasan Online Securities said in a note.

“But prices will move only narrowly after initial buying runs its course due to the dearth of fresh positive news," it added.

European stock markets and the pound slid Monday after British Prime Minister Theresa May said she was delaying a parliamentary vote on her deal to leave the EU after conceding it would not win sufficient support.

“The market is concerned that the postponement uses up valuable time before the 29th March exit date, and the risk of a no-deal scenario is growing," David de Garis, director of economics and markets at National Australia Bank said in a commentary.

The dollar slipped to 113.17 yen from 113.35 yen in New York Monday afternoon.

In individual stocks trade, SoftBank Group jumped 2.95 percent to 8,871 yen after announcing Monday it aims to raise over $23 billion by listing its Japanese mobile unit next week.

Nissan kept falling, down 2.26 percent at 923.6 yen in early trade after the previous day's fall of 2.90 percent, as ousted chairman Carlos Ghosn was charged and faced new allegations for alleged financial misconduct.

Prosecutors also charged Nissan for filing documents that allegedly understated Ghosn's earnings.

The Nikkei daily reported Tuesday that Nissan plans to book years of under-reported compensation paid to Ghosn as expenses in the year to March 2019 all at once, a move that could worsen the automaker's balance sheet.

 

Copyright AFP (Agence France-Press), 2018