Tokyo Stocks Open Higher After US Gains On Oil Price Spike

Tokyo, April 3 (UrduPoint / Pakistan Point News - 3rd Apr, 2020 ) :Tokyo stocks opened higher on Friday after four days of losses, supported by a cheaper Yen and Wall Street gains on a spike in oil prices.

The benchmark Nikkei index rose 1.22 percent or 218.05 points to 18,036.77 in early trade while the broader Topix index gained 1.19 percent or 15.76 points to 1,345.63.

The Tokyo market is likely to benefit from gains in US stocks and a breather in the yen's recent rise, said Okasan Online Securities.

But after the morning rally, there is a chance equities will run out of steam, predicted Yoshihiro Ito, chief strategist at the brokerage.

"Moves to build up buying at the weekend will be limited when the Tokyo metropolitan area could face a lockdown" to contain the coronavirus spread, he said in a note.

"And, prospects remain dark for the global economy. There are growing risks that China will be isolated as anti-globalisation gains ground," he said, adding Japanese companies heavily depended on China.

Wall Street ended with mild gains on Thursday as oil prices spiked on hopes of US help to end a Saudi-Russia price war that contributed to the slump.

The Dollar firmed to 108.10 yen early Friday from 107.81 yen in New York on Thursday afternoon.

Energy companies shot up in Tokyo trade as well, with oil explorer Inpex jumping 5.58 percent to 650.4 yen.

SoftBank Group rose 1.35 percent to 3,819 yen after the global tech investor announced it had terminated a deal to buy up to $3 billion WeWork shares as part of a restructuring of the office-sharing startup.