Tokyo stocks open higher as yen eases

Tokyo stocks opened higher on Friday after US President Donald Trump said he favors a strong dollar, sending the Japanese currency lower against the greenback, a move positive for Japanese exporters.

The benchmark Nikkei 225 index rose 0.40 percent, or 95.03 points, to 23,764.52 in early trade while the broader Topix index was up 0.26 percent, or 4.91 points, at 1,889.47.

The dollar gyrated Thursday on President Donald Trump's comments favoring a strong US currency, while European and Asian equity bourses retreated as their currencies gained ground.

One day after US Treasury Secretary Steven Mnuchin seemed to embrace a cheap US currency, Trump told CNBC Mnuchin's remarks had been taken out of context, and restated the traditional US policy.

"Ultimately, I want to see a strong dollar," Trump said, sparking a rally for the US currency, which had hit a three-year low against the euro earlier in the day.

In early Asian trade, the dollar fetched 109.66 yen, up from 109.44 yen in New York, extending the upward trend for the dollar after Trump spoke.

The halt in the yen's appreciation thanks to Trump's comments "is being favored by the market," said Yoshihiro Ito, chief strategist at Okasan Online Securities, in a commentary.

"But the Nikkei index would be range-bound ahead of US economic indicators and the start of corporate earnings season in Japan," he added.

In the United States, the GDP growth rate for the fourth quarter and durable goods orders are due later Friday.

On the Tokyo Stock Exchange, blue-chip exporters showed gains, with Nintendo up 1.42 percent at 48,450 yen and Sony up 2.50 percent at 5,380 yen.

Suzuki Motor dropped 4.04 percent to 6,150 yen after its Indian unit reportedly approved a change in the way it calculates royalties that will result in lower payments for new models.

In New York, the Dow and S&P 500 finished at records following mostly strong earnings, while the tech-rich Nasdaq again slipped as market insiders debated whether the rally is losing steam.