Nikkei 225 climbs 1.46% to 61,706.12 in early Tokyo trading

Japan's Nikkei 225 rose 1.46% to 61,706.12 at 09:15 Tokyo time on November 13. The index rose 886.76 points from the previous close of 60,819.36.

What happened

The Nikkei 225 started the Friday session higher. At 09:15 Asia/Tokyo it stood at 61,706.12, which is 886.76 points, or 1.46%, above the prior close of 60,819.36. The move came within the first 15 minutes of the morning session.

In currency markets, USD/JPY stood at 159.85 at 00:30 UTC. That is 0.14 yen, or 0.09%, above the previous close of 159.71. The move in the pair was small next to the move in the equity index, so the two markets did not travel the same distance in the opening period.

Why it matters

The Nikkei 225 is the main benchmark for large Japanese companies. A rise of 1.46% so early in the day shows that the market opened with firm participation. It also sets the starting point for the rest of the Tokyo day, which runs in two parts: 09:00-11:30 and 12:30-15:30 local time.

The yen is closely tied to Japanese equities. Many large exporters earn revenue abroad, so the dollar-yen rate affects how their overseas earnings look once converted into yen. On this morning the pair moved only slightly, to 159.85, so the currency does not appear to be the main driver of the index move on the numbers available.

The level of the index itself is also a point of context. At 61,706.12, the Nikkei 225 is trading well above the previous close, and the size of the move is large enough to shape sentiment across other Asian markets that open or trade later in the day.

For investors, the opening data describe where the market stands at one moment. They do not show how the session will end, since an index can move a great deal between the open and the close.

What to watch next

The first marker is the break between the morning and afternoon sessions at 11:30 Tokyo time. The index level at that point, compared with 61,706.12 at 09:15, shows whether the early rise held or faded.

The second is the close at 15:30. The final level will be set against the previous close of 60,819.36 to give the full-day change.

The third is USD/JPY, which stood at 159.85. Market participants will follow whether the pair stays near the previous close of 159.71 or moves further during the day, since the direction of the yen shapes the earnings picture for Japanese exporters.