TOKYO – Tokyo stocks opened higher today as investors take heart from rallies on Wall Street while weighing the impact of tighter Covid-19 measures on the economy.
The benchmark Nikkei 225 index was up 0.22%, or 64.15 points, at 29,832.21 in early trade, while the broader Topix index advanced 0.34%, or 6.76 points, to 1,966.23.
But, said analysts, the market is seen staying within the current range before the earnings season gets into full swing from next week.
The market is also eyeing the rise in Covid-19 infections in Japan, where fresh anti-virus rules come into effect in several places today, as vaccines begin rolling out to the elderly.
After the strong open, the Nikkei dipped into negative territory before zigzagging around the previous session’s closing price.
The market remains in a “risk-on” mood, with strong United States economic indicators pointing to a steady recovery rather than stoking inflation fears, said analysts.
However, the Japanese domestic market lacks fresh news ahead of annual earnings reports from next week, said Okasan Online Securities in a note.
“Tokyo shares are expected to move one step forward and one step back throughout this week.
“Major businesses will start issuing annual corporate results from next week. Before that, the market will lack new cues.
“It’s expected that investors will sort through individual shares for opportunities” rather than engage in broad buying.
Tokyo investors cheered Japanese golfer Hideki Matsuyama’s victory at the Masters shortly before the market opened. Players rewarded his sponsors for the feat.
Toyota, whose Lexus brand endorses Matsuyama, rose 1.01% to ¥8,503 (RM321) and Nomura Holdings rose 0.26% to ¥586.5.
Sumitomo Rubber Industries, which provides the Srixon brand of golf equipment and had its logo featured on a cap worn by Matsuyama at the Augusta National Golf Club, surged 1.97% to ¥1,343.
Among other major shares, Sony Group fell 0.45% to ¥12,175. SoftBank Group trimmed gains and was up 0.08% to ¥9,958.
Uniqlo operator Fast Retailing gave up early gains and fell 0.20% to ¥87,710.
In Hong Kong, stocks are also slightly higher after losses at the end of last week, with traders taking a record-breaking lead from Wall Street.
The Hang Seng Index rose 0.32%, or 93.17 points, to 28,791.97.
The benchmark Shanghai Composite Index dipped 0.14%, or 4.71 points, to 3,445.97, while the Shenzhen Composite Index on China’s second exchange eased 0.05%, or 1.10 points, to 2,235.49. – AFP, April 12, 2021
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