Tokyo stocks open higher, tracking US gains – Markets

TOKYO: Shares in Tokyo opened higher on Monday, extending strong rallies on Wall Street, where a weakening economic outlook dampened expectations of central bank monetary tightening.

The benchmark Nikkei 225 rose 1.02%, or 271.10 points, to 26,763.07 in early trading, while the broader Topix index rose 1.00%, or 18, 60 points, at 1,885.32.

The dollar reached 135.00 yen, against 135.17 yen in New York on Friday evening.

Tokyo stocks open higher, tracking US gains

“Gains in US equities likely encourage Japanese stock investors to buy,” Mizuho Securities said.

On Wall Street, the Dow Jones gained 2.7% to 31,500.68, the broad-based S&P 500 added 3.1%, while the tech-heavy Nasdaq Composite Index jumped 3.3 %.

The heightened risk of a global recession is leading investors to speculate that the pace of U.S. Federal Reserve interest rate hikes could be slower than expected, analysts said.

But Rakuten Securities’ senior strategist Masayuki Kubota shrugged off recession worries, saying it “most likely” won’t happen, while US and Japanese stock prices have now fallen enough to drive bullish buying. the search for bargains dominate.

Sony Group rose 1.69% to 11,440 yen, chip test equipment maker Advantest rose 1.62% to 7,510 yen and Hitachi rose 2.05% to 6,523 yen.

Tokyo Electric (TEPCO) rose 3.98% to 496 yen, after the industry ministry warned that the balance between power demand and supply would be tight on Monday due to hot weather.

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