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Tokyo stocks open up 1.53 percent higher

TOKYO : Tokyo stocks opened 1.53 percent higher on Monday amid hopes for European action to resolve the sovereign debt

Published October 17, 2011 Updated October 17, 2011 04:09am

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By Imad Uddin

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The benchmark Nikkei index at the Tokyo Stock Exchange opened up 133.48 points at 8,881.44.

Easing concerns about the European debt crisis were supporting stock prices, brokers said.

Europe on Saturday vowed to its partners from the Group of 20 top economies that it would take swift and decisive action to resolve a debt crisis that is threatening to drag the world economy back into recession.

Speaking after a meeting of G20 finance ministers and central bankers in Paris, French Finance Minister Francois Baroin said the eurozone would present answers as soon as next weekend, at a summit of EU leaders in Brussels.

"The results of the October 23 summit will be decisive," Baroin said. "We are acting resolutely to maintain financial stability."

Hiroichi Nishi, general manager at SMBC Nikko Securities, said: "It's psychologically reassuring that excessive concerns have subsided about a global recession being triggered by the European problems."

But Nishi added that investor risk appetite may not necessarily be returning, noting that recent trading value and volume have been relatively low.

The euro was at $1.3865 and 107.05 yen in early Asian trade, slightly down from $1.3881 and 107.17 yen in New York late Friday.

The dollar was almost flat against the Japanese currency, changing hands at 77.18 yen.

US stocks climbed Friday on Google's robust third-quarter earnings and buoyant US retail sales data, with the Dow Jones Industrial Average capping a strong week with a jump of 166.36 points (1.45 percent) to 11,644.49.

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