TOKYO – Tokyo stocks opened higher today, extending gains on Wall Street as US congressional Republicans offered a compromise in high-stakes talks on lifting the US debt limit.
The benchmark Nikkei 225 index was up 0.56% or 153.81 points at 27,682.68 in early trade, while the broader Topix index advanced 0.30% or 5.77 points to 1,947.68.
Wall Street stocks finished modestly higher after trading in the red most of the session as Senate minority leader Mitch McConnell said Republicans would allow Democrats to vote for temporarily lifting the ceiling on how much the government can borrow.
The move has “gone a little way to alleviating” concerns linked to the looming deadline for lifting or scrapping the US debt ceiling, which has been plaguing global markets, said strategist Ray Attrill of National Australia Bank in a note.
Declines in oil prices also eased worries over costs for Japanese blue-chip companies, analysts added.
The dollar fetched ¥111.39 (RM4.18) in early Asian trade, against ¥111.41 in New York late yesterday.
Among major shares in Tokyo, Sony was up 0.69% at ¥11,705, Toyota was up 1.01% at ¥1,858.5, and Uniqlo casual wear operator Fast Retailing advanced 1.10% to ¥71,300.
Japan Post dropped 3.08% to ¥898 after the government announced it would sell a stake worth approximately ¥950 billion in the postal services giant.
On Wall Street, the Dow ended up 0.3% at 34,416.99. – AFP, October 7, 2021
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