Tokyo Shares Rebound On Hopes For China Covid Easing, Forex

Tokyo, Dec 6 (UrduPoint / Pakistan Point News - 6th Dec, 2022 ) :Tokyo stocks shed earlier losses and ended higher Tuesday as investors grew hopeful about the prospects for China's economic reopening.

The benchmark Nikkei 225 index added 0.24 percent, or 65.47 points, to 27,885.87, while the broader Topix index firmed 0.12 percent, or 2.32 points, to 1,950.22.

The market opened in negative territory, under pressure after Wall Street shares retreated.

But investors returned to buying as the Dollar began to rebound, prompting participants to play catch-up with other markets and drive up Tokyo shares.

"Gains by the Yen slowed on the back of the rising US yields," and supported exporters, Daiwa Securities said in a note.

The dollar fetched 137.38 yen in Asian trade, surging from 136.31 yen seen earlier in the day in Tokyo and against 136.78 yen in New York late Monday.

But nagging worries over US inflation and the scope of the Fed's rate hikes weighed on the market, Daiwa said.

Meanwhile, hopes for China's reopening and easing of Covid rules provided support.

"China markets continue to fare well, with investors riding a succession of reopening optimism waves," said Stephen Innes of SPI Asset Management.

Among Tokyo shares, some sports-related firms suffered after Japan's national football team was knocked out of the World Cup.

Cyber Agent, an IT firm that offered free streaming of World Cup games, ended down 4.14 percent at 1,228 yen.

Sporting equipment maker Mizuno trimmed losses but still was down 0.28 percent at 2,859 yen.

Mitsubishi UFJ Financial Group rose 0.89 percent to 748.5 yen, while Mizuho Financial Group advanced 0.97 percent to 1,661.5.

Sony ended off 1.17 percent at 11,015 yen and SoftBank Group fell 2.49 percent to 5,917 yen.

Uniqlo operator Fast Retailing jumped 2.04 percent to 85,600 yen.