TOKYO: Tokyo stocks opened 1.40 percent higher on Friday, backed by a European interest rate cut and expectations that Greece will drop its plan to hold a referendum on a European rescue package.
The benchmark Nikkei index at the Tokyo Stock Exchange opened up 120.85 points at 8,761.27 after the European Central Bank's surprise rate cut sent European and US stock markets, along with the euro, soaring on Thursday.
Dealers said the quarter point cut to 1.25 percent was even more unexpected as it came at the first policy meeting chaired by new ECB chief Mario Draghi -- known as "Super Mario" in his native Italy for his self-assured record.
The euro fetched $1.3832 and 107.94 yen in early Asian trade on Friday, slightly up from $1.3808 and 107.82 yen in New York late Thursday.
The dollar was almost flat against the Japanese currency, trading at 78.02 yen.
Greek Prime Minister George Papandreou said on Thursday he could drop a plan to hold a referendum which had incensed European leaders trying to organise a rescue plan for the debt-ridden nation.
Investors were relieved after the controversial plan roiled global markets over the last few days, said Kenichi Hirano, operating officer at Tachibana Securities.
"The index was down on Greece worries and up on Greece hopes in recent days... Jittery trading will likely continue," he told Dow Jones Newswires.
The Nikkei had closed down 2.21 percent on Wednesday on renewed worries over the eurozone crisis before a national holiday ion Thursday.
US stocks shrugged off eurozone turmoil to rack up solid gains on Thursday, helped by solid earnings reports, slightly improved jobs numbers and the ECB rate cut.
The blue-chip Dow Jones Industrial Average closed up 1.76 percent at 12,044.47.
Comments
Comments are closed for this article.