Tokyo shares open higher on overseas gains

The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 8.70 points, or 0.62 percent, to 1,419.86.

TOKYO, Sept 28 Japanese stocks fell on Monday as investors took profits from gains made on Friday ahead of key economic indicators scheduled for release this week in Japan, China and the U.S.

The yen strengthened to 120.06 against a dollar. It had reached its lowest since June 2012 on Tuesday on fears that China’s economic slowdown would curb the country’s huge appetite for commodities and resources.

Topix index posted its steepest quarterly drop in five years, as non-bank lenders and precision-instrument makers advanced.

This prompted one of the boldest European Central Bank forecasts to date from analysts at Standard & Poor’s. With China\’s troubles however and the fact that Yen has actually appreciated in the last month on account of its safe haven status, investors seem to be doubting whether Abernomics can pull off a miracle.

In the currency market, the US dollar traded in the upper 119-yen range on Wednesday, up slightly from Tuesday’s close in Tokyo.

Yields on U.S. Treasury bonds rose. Nikkei\’s Price to Earnings ratio remains a comfortable 13 in relation to a 12 month forward earnings which shows that they remain an attractive destination for emerging market flows. It was still poised for a loss of 15% over the quarter, its deepest since 2010.

Zambia’s kwacha, which had hit a record low on concerns about Glencore and falling copper prices, rebounded around 2 percent.

Milbon Co., Ltd jumped 4.9% to 3,955 yen after the hair cosmetics maker reported net sales in the nine-month period ending in September increased 8.4% from a year ago to 19.98 billion yen.

Prices of other industrial metals such as aluminium and zinc also halted their recent routs overnight.

The dollar got a lift from American private-sector jobs data, which bolstered bets a hike in US interest rates will come in 2015, while the euro fell back on a report euro zone inflation had turned negative.