Tokyo shares open higher on US recovery hopes

International Desk
5 April 2021, Mon
Published: 03:48

Tokyo shares open higher on US recovery hopes

Tokyo stocks extended higher Monday as financiers cheered strong US jobs data that boosted general optimism for a US economic recovery.

The benchmark Nikkei 225 index rose 0.74 percent, or 222.06 points, to 30,076.06, while the broader Topix index gained 0.40 percent, or 7.81 points, to 1,979.43.
The Tokyo market was likely to stay “solid”, as investors embraced a healthy rebound in US jobs in March, analyst said.

President Joe Biden hailed the recovery as a sign of hope, after he unveiled a massive $2 trillion infrastructure spending plan.

“Hopes for US recovery are offsetting worries about rising interest rates,” Okasan Online Securities said.

Investors have voiced concern that a fast recovery might fan inflation and force central banks to tighten their super-easy monetary policies.

The market is already at a high level, and investors would be sensitive to signs of overheating, Okasan added.

Still, technical charts reflect brightening investor spirits, although profit-taking is expected once the Nikkei shoots above the 30,000 mark, SBI Securities said in a note.

“Keeping its momentum from last week, the market should attract buyers at the start,” SBI said, adding that sell orders are likely to kick in once the headline index rise above the psychologically key level.

The dollar stood at 110.65 yen in early trade compared with 110.54 yen in New York last Friday.

Sony Group rose 0.57 percent to 12,270 yen. Uniqlo-operator Fast Retailing surged 1.98 percent to 92,260 yen.

Nintendo rose 1.26 percent to 63,730 yen. SoftBank Group rose 1.11 percent to 9,896 yen.

Mitsubishi UFJ Financial Group added 1.20 percent to 599.6.

Toyota despaired early gains and lost 0.38 percent to 8,430 yen. But Nissan added 1.29 percent to 587.1 yen. Source: AFP