Tokyo stocks open higher on Fed optimism

Tokyo, Japan | AFP | Friday – Tokyo stocks opened higher on Friday, extending record-setting rallies on Wall Street over an expected Federal Reserve interest rate cut later this month.

The benchmark Nikkei 225 index was up 0.12 percent or 25.04 points at 21,668.57 in early trade, while the broader Topix index was up 0.03 percent or 0.52 points at 1,579.15.

But both indexes slid into negative territory half an hour after the opening bell.

"The Japanese stock market is seen dominated by purchases encouraged by record highs in the US market, but profit-taking will gradually creep in ahead of a long weekend," Okasan Online Securities said in an early morning commentary.

The Japanese market will be closed on Monday for a public holiday.

The dollar fetched 108.53 yen in early Asian trade, against 108.45 yen in New York.

In Tokyo, Fast Retailing, Uniqlo casual wear operator, was down 0.82 percent at 67,090 yen after it reported third-quarter operating profit largely in line with market expectations.

Sony was up 0.52 percent at 6,004 yen and telecom and venture fund giant SoftBank Group was up 0.27 percent at 5,255 yen, but some tech firms were lower, with industrial robot maker Fanuc declining 1.96 percent to 19,220 yen.

On Wall Street, the Dow ended up 0.9 percent at 27,088.08.