Tokyo Markets Open Higher After Fed Decision

Tokyo stocks opened higher Thursday, tracking US rallies after Federal Reserve chief Jerome Powell acknowledged in a dovish press conference that inflation was starting to ease

Tokyo, (UrduPoint / Pakistan Point News - 2nd Feb, 2023 ):Tokyo stocks opened higher Thursday, tracking US rallies after Federal Reserve chief Jerome Powell acknowledged in a dovish press conference that inflation was starting to ease.

The benchmark Nikkei 225 index was up 0.45 percent, or 122.19 points, at 27,469.07 in early trade, while the broader Topix index added 0.15 percent, or 2.94 points, to 1,975.17.

The dollar stood at 128.45 yen, against 128.90 yen on Wednesday in New York.

The US central bank announced a quarter-point increase to the benchmark lending rate, opting for a more traditional hike after a series of larger increases.

Analysts noted that Powell avoided criticising recent movements in financial markets, which have anticipated a softer stance from the Fed.

Powell's press conference "had him say for the first time that the disinflation process has begun", said Edward Moya, senior market analyst at OANDA.

"If the next couple of inflation reports show pricing pressures continue to ease, the Fed may finish this tightening cycle in March," he said.

Traders in Japan were also digesting Powell's comments, with the Tokyo market seen "kicking off to a solid start following US gains", Monex senior market analyst Toshiyuki Kanayama said.

SoftBank Group advanced 1.90 percent to 6,373 yen, Toyota edged up 0.02 percent to 1,903.5 yen, and Uniqlo operator Fast Retailing added 0.76 percent to 78,590 yen.

Sony Group lost 1.13 percent to 11,340 yen. The conglomerate will announce its third-quarter earnings later on Thursday.