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Tokyo shares open higher

TOKYO : Tokyo share prices opened 0.71 percent higher on Tuesday following an overnight gain on Wall Street amid optimis

Published June 21, 2011 Updated June 21, 2011 06:09am

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By Syed Murtaza Gheblehzadeh

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The benchmark Nikkei-225 index opened up 66.11 points at 9,420.43.

Japanese shares rose after the Dow Jones Industrial Average closed up 76.02 points (0.63 percent) at 12,080.38 on Monday following a pledge by European leaders to head off a Greek debt default.

But the gains in Tokyo may be limited, with investors awaiting the outcome of the US Federal Reserve's policy meeting later Tuesday, brokers said.

"The widespread view is that the slowdown of the US economy is temporary, but investors want to confirm whether that's the understanding during Bernanke's press conference," said Hiroichi Nishi, general manager at SMBC Nikko Securities.

Fed chairman Ben Bernanke is to speak after the US central bank's policy-setting Federal Open Market Committee ends its two-day meeting on Wednesday.

The FOMC is expected to announce its $600 billion Treasury bond purchases programme will expire as scheduled by the end of June, and not announce additional stimulus amid weak economic growth.

The euro firmed against the dollar in early Tokyo trade, changing hands at $1.4351 against $1.4301 in New York late Monday.

The dollar traded at 80.20 yen, unchanged from New York.

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