TOKYO – Tokyo shares opened higher today, maintaining momentum after global rallies fuelled by robust risk appetite among foreign investors, and optimism over the swift development of coronavirus vaccines.
The Nikkei 225 added 125.84 points or 0.47% to 26,770.55 in early trade while the broader Topix index edged up 0.01% or 0.12 points to 1,786.64.
The dollar stood at 104.01 yen, hovering around the 104.03 yen seen in New York on Friday.
"Japanese shares are heading higher on the back of the surges of US shares (last week)," Okasan Online Securities said in a commentary.
A recent stream of positive news about the development of coronavirus vaccines has brightened sentiments among global players, as has the easing political drama in the US where President Donald Trump has said he would step aside if the electoral college confirms Joe Biden as the next president.
This week, investors will be eyeing key US data including ISM manufacturing index and jobs figures.
Okasan cautioned over the possibility of a further slipping of the dollar, which usually weighs on Japanese shares. But it added that such a trend could make Japanese shares seem attractive among foreign investors and could help support the Japanese market beyond the immediate term, Okasan said.
The brokerage also warned about the risks of players turning cautious about possible overheating. Many investors may also turn to position adjustment to settle their accounts at the end of the month.
Still, Okasan said it has continued to observe strong appetite for bargain hunting with demand seen among foreign investors.
"Optimism for further gains is winning" against the need for position adjustment and overheating worries, it said.
Among major shares, internet investor SoftBank Group added 1.38% to 7,350 yen. Nintendo rose 1.43% to 59,020.
Uniqlo operator Fast Retailing gained 0.64% to 84,670 yen.
Sony lost earlier gains and fell 0.63% to 9,750, while Toyota also fell 1.25% to 7,161. Mitsubishi UFJ Financial Group fell 1.45% to 456.6 yen. – AFP, November 30, 2020
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