Tokyo Stocks Open Higher, Tracking US Gains

Tokyo, (UrduPoint / Pakistan Point News - 27th Jan, 2023 ) :Tokyo shares opened slightly higher on Friday after Wall Street rallies on stronger-than-expected US economic data.

The benchmark Nikkei 225 index added 0.09 percent, or 25.26 points, to 27,388.01, while the broader Topix index edged up 0.17 percent, or 3.34 points, to 1,981.74.

"Japanese shares are expected to start with gains following rallies in US stocks," Mizuho Securities said in a note.

The US economy expanded 2.9 percent in the fourth quarter last year, exceeding analyst estimates with help from resilient consumer spending.

While the GDP data did not eliminate recession fears, it offered a reason for optimism that the US Federal Reserve will manage to lower inflation without tipping the economy into a major downturn.

On Wall Street, the Dow bounced 0.6 percent to 33,949.41, while the broad-based S&P 500 surged 1.1 percent and the tech-heavy Nasdaq logged the biggest gain of 1.8 percent.

The Dollar fetched 129.75 Yen in early Asian trade, against 130.25 yen in New York late Thursday.

Toyota was up 0.31 percent at 1,899 yen after the world's top-selling automaker named Koji Sato president and CEO, with third-generation chief executive Akio Toyoda stepping aside to become board chairman.

Nissan was up 0.47 percent at 452.2 yen after news that a deal reshaping its alliance with Renault will be announced on February 6, according to a source close to the matter.

The information was released after a meeting of the alliance was held to finalise the agreement on relations between the French and Japanese groups.

Under the agreement, Renault plans to reduce its share in Nissan's capital to 15 percent from the current figure of around 43 percent.

That would mean both groups hold 15 percent of the other's capital, according to several sources interviewed by AFP in recent months.

Among others, Uniqlo operator Fast Retailing was up 0.23 percent at 77,510 yen and SoftBank Group was up 0.53 percent at 6,231 yen.

Drugmaker Eisai was off 0.80 percent at 8,215 yen, while shipping firm Nippon Yusen was down 3.60 percent at 3,051 yen.