Tokyo Stocks Open Higher On US Rallies

Tokyo stocks opened higher on Thursday, extending rallies on Wall Street with few other market-moving events offering investors trading cues

Tokyo (UrduPoint / Pakistan Point News - 3rd Sep, 2020 ):Tokyo stocks opened higher on Thursday, extending rallies on Wall Street with few other market-moving events offering investors trading cues.

The benchmark Nikkei 225 index was up 1.18 percent or 273.99 points at 23,521.14 in early trade, while the broader Topix index advanced 0.87 percent or 14.14 points to 1,637.54.

Japanese shares are being supported by rallies on Wall Street and the "focus is on whether the Nikkei can recover to the key 23,500 level," said Toshiyuki Kanayama, senior market analyst at Monex.

In Tokyo, some blue-chip exporters were higher, with Canon gaining 1.55 percent to 1,768 yen and Toray, a fine chemicals and carbon fibres firm, trading up 1.74 percent at 507.6 yen.

Banks were also higher with Mitsubishi UFJ Financial trading up 0.41 percent at 442.8 yen and Mizuho Financial up 1.47 percent at 144.

8 yen.

The dollar fetched 106.23 yen in early Asian trade, against 106.16 yen in New York late Wednesday.

Wall Street stocks rocketed higher again Wednesday with the Nasdaq ending above 12,000 for the first time as investors shrugged off disappointing employment data and a cautious Federal Reserve report.

The Dow Jones Industrial Average finished up 1.6 percent at 29,100.50.

"Incoming US economic data continues to play no part in explaining the latest lurch higher in US stocks," said Ray Attrill, strategist at National Australia Bank.

"Quite why the rally has broadened out is frankly anyone's guess, though both the 'rates lower for longer' and 'vaccine round the corner' pretexts received some (small) succour overnight," he said.

Looking ahead, investors were watching US August non-manufacturing ISM together with weekly jobless claims later in the day, he added.