TOKYO – Tokyo’s key Nikkei index opened higher today after US high-tech shares rebounded on enthusiasm over prospects for a Covid-19 vaccine following two days of declines.
The benchmark Nikkei 225 index was up 0.60%, or 152.85 points, at 25,502.45 in early trade, while the broader Topix index slipped 0.07%, or 1.20 points, to 1,727.87.
“Japanese shares are seen gaining, supported by a sharp rally in the US Nasdaq, while investors are also aware of overheating in the market,” said Toshiyuki Kanayama, senior market analyst at Monex, in a commentary.
The dollar fetched ¥105.48 in early Asian trade, against ¥105.59 in London late yesterday.
“Profit-taking selling may weigh on the upside, but purchase orders encouraged by expectations for a coronavirus vaccine development are overwhelming the market,” said Mizuho Securities in a commentary.
Investors are awaiting earnings reports later in the day by Nissan and e-commerce platform Rakuten, among others, it said.
In Tokyo, chip-linked shares are among the winners, with equipment manufacturer Tokyo Electron gaining 1.34% to ¥30,240 and chip-testing equipment maker Advantest trading up 1.51% at ¥6,730.
Nissan was down 1.33% at ¥415.6 yen ahead of its first-half earnings report due after the closing bell.
Honda was down 0.70% at ¥2,973.5 after it won approval to sell highly autonomous self-driving cars in Japan, in what the automaker and Japanese authorities said is a world first.
Online mall giant Rakuten was up 1.89% at ¥1,132 ahead of its first-half earnings report due after the market close.
On Wall Street, the Dow Jones lost 0.08% to 29,397.63 points, while the tech-rich Nasdaq gained 2.01% after two sessions of declines. – AFP, November 12, 2020
