Tokyo Shares Rebound On US Debt Ceiling Vote

Tokyo, June 1 (UrduPoint / Pakistan Point News - 1st Jun, 2023 ) :Tokyo shares rose Thursday as investors cheered the US House approval of a bill to raise the debt ceiling, while keeping their eye on the Federal Reserve's future moves.

The benchmark Nikkei index climbed 0.84 percent, or 260.13 points, to 31,148.01, while the broader Topix index rose 0.88 percent, or 18.66 points, to 2,149.29.

Trading opened on a solid footing thanks to expectations of healthy investments as a new month begins.

The Nikkei surged in morning trade after the US lawmakers passed a deal to raise the debt limit, a key step to avoid a historic default after weeks of political suspense.

Shanghai shares shed earlier losses and traded in the black with a momentum that provided further support for the Tokyo market, analysts said.

Japanese shares "had volatile moments... but overall the market generally saw solid trade including of blue-chip shares," IwaiCosmo Securities said.

Global investors are shifting their focus back to US monetary policy "with a debt ceiling deal close to being approved by Congress", Stephen Innes at SPI Asset Management said.

"The big question is will this result in a sizable tightening event that will lead to a big Dollar rally and equity market sell-off?" he added The dollar stood at 139.68 yen, against 139.30 Yen in New York.

Toyota gained 1.81 percent to 1,943 yen after it announced an additional $2.1 billion investment into its new battery plant in North Carolina.

The automaker also said it would begin assembling an all-new battery-powered SUV at its plant in Kentucky in 2025.

Sony Group firmed 1.90 percent to 13,410 yen. SoftBank Group jumped 4.57 percent to 5,725 yen, and Tokyo Electron rose 2.17 percent to 19,735 yen.

Mitsubishi UFJ Financial Group jumped 3.37 percent to 964 yen. Nomura Holdings added 0.88 percent to 493 yen.