Tokyo stocks open up 1.58%, rebounding from previous day's plunge

TOKYO (AFP) - Tokyo stocks opened 1.58 per cent higher on Friday, rebounding from the previous day's plunge of more than five per cent.

The Nikkei 225 index at the Tokyo Stock Exchange was up 215.20 points to 13,804.23 at the start while the dollar firmed to 101.01 yen (S$1.25) in early Friday trade from 100.74 yen in New York late on Thursday.

The euro bought US$1.3040 (S$1.63) and 131.85 yen against US$1.3043 and 131.39 yen.

The higher opening also came after the Japanese government released a barrage of economic data just before the market opened, including a stronger-than-expected on-month rise of 1.7 per cent in April factory output.

The benchmark Nikkei index on Thursday lost 5.15 per cent as jittery investors dumped shares on the back of a stronger yen and after Wall Street fell on concerns over global growth.

Thursday's plunge came a week after the Nikkei dived 7.32 per cent following months of sharp gains, its biggest daily fall since March 15, 2011, in the wake of Japan's huge earthquake-tsunami and the ensuing nuclear crisis.

But in New York the Dow Jones Industrial Average added 0.14 per cent at 15,324.53 on Thursday as weaker-than-expected economic news fuelled hopes that the Federal Reserve will continue to keep its foot on the stimulus pedal.

"With little fallout seen elsewhere from Japanese market turbulence and few other palpable negatives, at least a modest rebound is in order," said SMBC Nikko Securities general manager of equities Hiroichi Nishi.

"However, volatility may remain for the time being," he added.