TOKYO – Tokyo stocks opened higher today, supported by gains on Wall Street, with investors digesting Japan’s third-quarter gross domestic product figures, which showed an exit from recession.
The benchmark Nikkei 225 index was up 1.13%, or 286.11 points, at 25,671.98 in early trade, while the broader Topix index gained 1.16%, or 19.80 points, to 1,723.02.
“Japanese shares are seen gaining on rallies on US stocks, while investors are closely watching Japan’s GDP figures for the July-September quarter”, which were released 10 minutes before the opening bell, said Toshiyuki Kanayama, senior market analyst at Monex, in a commentary.
Japan’s economy exited recession in the third quarter, growing a better-than-expected 5% thanks to a rise in domestic demand and exports, government data showed today, as signs of recovery begin to emerge after a record contraction.
Traders are also awaiting China’s industrial output and retail sales due later in the day, said Kanayama.
The dollar fetched ¥104.69 (RM4.12) in early Asian trade, against ¥104.62 in New York late Friday.
Among the major shares in Tokyo, business cycle-sensitive stocks and some exporters are higher, with chip-making equipment maker Tokyo Electron rallying 2.29% to ¥31,740, Sony trading up 1.81% at ¥9,326 and Toyota up 1.35% at ¥7,415.
On Wall Street, the Dow ended up 1.4% to close at 29,479.81. – AFP, November 16, 2020
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