Tokyo Shares Open Higher

Tokyo shares opened higher on Tuesday after US high-tech stocks surged overnight on hopes for strong earnings

Tokyo, (UrduPoint / Pakistan Point News - 21st Jul, 2020 ):Tokyo shares opened higher on Tuesday after US high-tech stocks surged overnight on hopes for strong earnings.

The benchmark Nikkei 225 index added 0.43 percent or 98.12 points to 22,815.60 in early trade while the broader Topix index rose 0.19 percent or 2.96 points to 1,579.99.

The solid start on the Tokyo market came after major US tech shares such as Amazon and Microsoft drove the tech-rich Nasdaq Composit Index to another record close of 10,767.09, up 2.5 percent.

"Against expectations, US stocks returned to the trading week by gaining, which should encourage Tokyo shares to also rise in early trade," Okasan Online Securities said in a note.

US high-tech shares benefitted as many workers around the world turned to their products to work from home or do online shopping.

The Tokyo market should also remain well supported thanks to the Bank of Japan's asset purchase programme, amid thin trade, the brokerage said.

But some investors may refrain from making major moves ahead of a four-day weekend in Japan, Okasan said, adding that the market could turn mixed after an initial round of buying is finished.

Many investors are also eyeing opportunities to lock in profits ahead of a new corporate earnings season.

The dollar stood at 107.12 yen, compared with 107.30 yen on Monday in New York.

Ahead of the opening bell, the government said Japan's core consumer prices remained flat in June from a year ago, providing a further piece of evidence for Tokyo's prolonged struggle to boost prices to achieve two-percent inflation and foster stable growth.

Among major shares, tech investor SoftBank Group surged 2.17 percent to 5,408. Tokyo Electron, major producer of equipment for making semiconductors, also rose 0.82 percent to 29,360 yen.

Sony added 1.72 percent to 8,391 yen, while Nintendo jumped 2.38 percent to 48,140 yen.

But Toyota lost earlier gains and fell 0.18 percent to 6,782 yen.

Drug maker Shionogi&Co added 1.95 percent to 6,382 yen after the Nikkei business daily reported that it was expanding its capacity to produce vaccines, as the company continues the development of a coronavirus vaccine.