Tokyo Shares Gain After Wall Street Rallies

Tokyo, April 6 (UrduPoint / Pakistan Point News - 6th Apr, 2021 ) :Tokyo stocks opened higher on Tuesday after Wall Street shares rallied to another record finish on optimism for further US recovery.

The benchmark Nikkei 225 index rose 0.31 percent, or 94.75 points, to 30,184.00 in early trade. The broader Topix index gained 0.04 percent, or 0.78 points, to 1,984.32.

The strong start for the Tokyo bourses came after the US market reopened after a long weekend, giving investors a chance to react to the robust US March jobs data issued on Friday.

Separately, fresh data also showed activity in the US services sector hitting an all-time high in March on sustained hopes that the US economy will gradually reopen as vaccination continues.

But the Tokyo market was showing signs of overheating after recent gains, discouraging investors from making aggressive bets for now.

Overnight, the Dow Jones Industrial Average jumped 1.1 percent to 33,527.19, an all-time high.

The broad-based S&P 500 also marked a fresh record close after rising 1.4 percent, while the tech-rich Nasdaq Composite Index surged 1.7 percent.

Investors picked up shares of firms that show room for further business growth while also cheering falling US yields, Okasan Online Securities said in a note.

"Tokyo shares are testing higher prices as sentiment brightened after the US rallies," Okasan said.

But data indicate the market is starting to overheat.

"After the initial round of early buying, the market is likely to stay in a range," the brokerage added.

Shortly before the Tokyo market opened, the government said Japan's household spending for February fell 6.6 percent from a year ago.

It was the third straight monthly decline, as the government imposed emergency measures to contain coronavirus infections in major economic hubs such as the greater Tokyo area.

Among major Tokyo shares, Toyota lost earlier gains and moved 0.24 percent lower to 8,441 Yen. Uniqlo-operator Fast Retailing was down 0.06 percent lower at 92,540 yen.

SoftBank Group fell 0.85 percent to 9,908 yen. Sony Group also remained under water, down 0.97 percent to 12,210 yen.

Mitsubishi UFJ Financial Group fell 2.00 percent to 598.4 yen.

IT firm Fujitsu added 1.01 percent to 16,550 yen. Industrial robot maker Fanuc gained 0.47 percent to 28,010 yen.