Tokyo, Japan (BBN)-Shares in Japan opened up on Thursday – despite ongoing concern over Greece – as investors welcomed a weaker yen against the dollar and after US markets ended higher after good payroll data.
In Tokyo, the benchmark Nikkei 225 share index was up 1.13 per cent at 20,557.13 points in mid-morning trade, reports BBC.
The dollar was buying 123.33 yen in early Asian trade, from 123.15 yen in New York on Wednesday.
A weaker yen against the dollar is good for Japan’s big exporting firms.
It makes their goods cheaper to buy overseas and gives a boost to their bottom line when they repatriate earnings.
In the US, markets were buoyed by news from payroll firm ADP that businesses had added 237,000 positions in June, up from May numbers, and beating expectations. Official US jobs numbers are due out later Thursday.
In Australia the S&P/ASX 200 was up 0.76 per cent at 5,557.80 despite official figures showing the country’s trade deficit in May was bigger than expected. Thursday’s figures put the gap at 2.75bn Australian dollars ($2.09bn; £1.34bn) against forecasts of a $2.2bn deficit.
Meanwhile, South Korea’s benchmark Kospi was up 0.28 per cent at 2,103.81.
Analysts said investors were expected to continue trading tentatively in most of Asia after Eurozone finance ministers ruled out any further talks on a fresh bailout for Greece until Sunday’s referendum.
Greece is set to vote on Sunday to accept or reject proposals made by its creditors last week, with Prime Minister Alexis Tsipras urging a ‘no’ vote.
EU leaders have warned a ‘no’ vote would mean leaving the euro, while market analysts have said a ‘no’ vote would see investor sentiment hit and more volatile trading ahead.
The Shanghai Composite was down 0.9 per cent at 4,017.06 in early trade, while Hong Kong’s benchmark Hang Seng was up 0.22 per cent at 26,323.86 after being closed for a public holiday on Wednesday.
Mainland Chinese shares fell 5.2 per cent on Wednesday, reversing most of the gains seen in the previous session and adding to several days of erratic trade.
Analysts have said that talk of the government putting a stop to new share listings, together with reports that endowment pension funds may be able to invest in equities for the first time, had sent ripples through the market.