Tuesday October 27, 7:50 pm Eastern Time
RPT/Tokyo stocks open firmer on oil merger news
TOKYO, Oct 28 (Reuters) - Tokyo shares opened slightly firmer as news of a massive merger in the oil sector fuelled hopes of progress in the restructuring of the economy.
A 68 billion yen basket trade done off-hours also pushed the market higher, traders said. But they cautioned that a stronger yen was likely to drag down exporters, capping any gains.
At 0022 GMT, the benchmark Nikkei average had risen 32.14 points, or 0.23 percent, to 13,852.82. December Nikkei futures were up 10 at 13,870.
Traders said a merger agreement between Mitsubishi Oil and Nippon Oil was well received by the market. The two companies are expected to hold a joint news conference to outline the agreement's details at 11 a.m. (0200 GMT).
Traders cautioned, however, that the news was not enough to support the market.
''The Nippon Oil and Mitsubishi Oil merger will be well received as it represents more movement towards restructuring,'' said Kenji Karikomi, deputy general manager at Daiwa Securities. ''But it won't have a strong impact on the market.''
A stronger yen capped share gains, raising concerns that high-tech companies and other exporters will run into trouble.
Exporters such as Sony Corp , which releases half-year earnings later in the day, opened weaker.
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