Tokyo Stocks Open Higher Tracking US Rallies

Tokyo, (UrduPoint / Pakistan Point News - 23rd Jan, 2023 ) :Tokyo stocks opened higher on Monday after Wall Street stocks rebounded, led by tech shares buoyed by Netflix results and Federal Reserve comments signalling smaller interest rate hikes.

The benchmark Nikkei 225 index was up 1.21 percent, or 320.96 points, at 26,874,49 in early trade, while the broader Topix index added 0.88 percent, or 16.95 points, to 1,943.82.

"Japanese shares are seen starting with significant gains following rallies in US stocks," Monex senior market analyst Toshiyuki Kanayama said in a note.

Analysts also cited comments from Federal Reserve Governor Christopher Waller endorsing a 25-basis point interest increase at the Fed's next meeting, smaller than recent hikes.

Data released Friday showed that US existing home sales declined for the 11th straight month, contributing to the biggest annual drop since 2008 in the wake of higher lending rates.

But the headline figure was "better than market expectations", said Kanayama of Monex.

The Dollar fetched 129.45 Yen in early Asian trade, against 129.51 yen on Friday in New York.

A lull in the yen's appreciation against the dollar also supported the Japanese market, Mizuho Securities said in a commentary.

In Tokyo, Nissan was up 0.79 percent at 433.8 yen after reports over the weekend said the French government supported plans the Japanese carmaker and Renault are discussing to rebalance their alliance, including reducing Renault's 43.7 percent stake in Nissan.

Bigger rival Toyota was up 0.19 percent at 1,886.5 yen and Honda was up 0.91 percent at 3,097 yen.

Airlines were lower, with ANA Holdings slipping 0.51 percent to 2,851 yen and Japan Airlines trading down 0.99 percent at 2,696 yen after a report said reservations by Chinese tourists during the lunar new year were only around 10 percent of the pre-pandemic 2019 figure.