TOKYO – Tokyo stocks opened higher today, with investor focus shifting to Japanese politics after Prime Minister Yoshihide Suga said he will not stand for re-election.
The benchmark Nikkei 225 index was up 1.31%, or 380.52 points, at 29,508.63 in early trade, while the broader Topix index gained 0.93%, or 18.82 points, to 2,034.27.
“Japanese shares are likely to move upwards and seek their ceilings amid developments in Japanese politics,” said Okasan Online Securities.
Suga last Friday said he will not run in his ruling party’s upcoming leadership vote, throwing open the race for the next prime minister in the world’s third-largest economy.
The news prompted a positive reaction from the Tokyo market on Friday, with the Nikkei index ending more than 2% higher.
“Last week, foreign investors returned to buy Japanese stocks, judging that the Liberal Democratic Party will avoid a drubbing in the general election, after Prime Minister Suga said he will step down,” said Masayuki Kubota, chief strategist at Rakuten Securities.
Even before Friday, “Japanese shares had been rebounding, because they were relatively cheap”.
The United States dollar fetched ¥109.80 (RM4.15) in early Asian trade, against ¥109.73 in New York on Friday.
Tokyo shares were broadly higher, with investment giant SoftBank Group trading up 0.52% at ¥6,232, Uniqlo operator Fast Retailing up 1.67% at ¥75,880, and chip-testing equipment maker Advantest up 1.97% at ¥10,340.
Airlines were also higher, with ANA Holdings trading up 1.64% at ¥2,665.5 and Japan Airlines up 2.64% at ¥2,448. – AFP, September 6, 2021
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