Tokyo Shares Rebound After US Yields Drop

Tokyo shares rebounded Monday following sharp losses in the previous session as US bond yields dipped

Tokyo (UrduPoint / Pakistan Point News - 1st Mar, 2021 ) :Tokyo shares rebounded Monday following sharp losses in the previous session as US bond yields dipped.

The benchmark Nikkei 225 index added 2.41 percent or 697.49 points at 29,663.50, while the broader Topix index surged 2.04 percent or 37.99 points to 1,902.48.

"Falls of US bond yields have eased the minds of investors," Okasan Online Securities said in a commentary.

The Nasdaq's gain on Friday also lifted high-tech issues in Tokyo, SMBC Nikko Securities said.

Gradual easing of anti-pandemic restrictions in parts of Japan also brightened investor spirits, SMBC Nikko said.

The government ended strict anti-pandemic measures in six of the 10 areas that had seen surges of new infections. The emergency measures now affect only Tokyo and three surrounding regions.

"A partial lifting of the state of emergency... seemed to have had a positive influence on the market's psychology, and a broad range of shares gained," the brokerage said.

The Dollar fetched 106.54 Yen in Asian trade, nearly unchanged from 106.55 yen in New York late Friday.

Many blue-chip issues benefited from the renewed energy of the market, although the Nikkei index overall recovered only a part of the roughly four percent drop it suffered on Friday, analysts said.

Some players wanted to see how Wall Street would react to the falling bond yields before making further bets in Tokyo, Okasan said.

"Many investors still want to see the direction of the US market after US yields slipped," Okasan said in a note.

Among major shares, SoftBank Group rallied 5.46 percent to 10,435 yen after it said it has reached a settlement with WeWork's special committee and the company's co-founder and former chief executive, Adam Neumann, putting to rest a legal battle dating back to 2019 with a $1.6 billion payment.

Other high-tech issues also enjoyed gains.

Chipmaker Murata Manufacturing rose 4.43 percent to 9,483 yen, while Advantest, a major producer of testing tools for semiconductors, surged 4.23 percent to 9,120 yen.

Mizuho Financial Group rose 0.96 percent to 1,574 yen after the banking group said it had restored its ATM and online services. Its bigger rival Mitsubishi UFJ Financial Group also added 0.72 percent to 562 yen.

Toyota added 0.66 percent to 7,925 yen, while Sony rose 2.56 percent to 11,405 yen.