TOKYO – Tokyo shares opened higher on Monday, lifted by recent global rallies on hopes for fresh US stimulus and coronavirus vaccines.
The benchmark Nikkei 225 index added 0.26% or 70.05 points at 26,821.29 in early trade, while the broader Topix index rose 0.27% or 4.75 points to 1,780.69.
The Tokyo market extended global equity rallies, with investors remaining optimistic as US lawmakers negotiated a fresh stimulus to counter the coronavirus pandemic. The three major US stock indices closed at new records last week.
A more cautious mood is brewing, however, after official data showed the United States added just 245,000 jobs in November – well below market expectations – marking the fifth straight month of tapering jobs gains, Okasan Online Securities said.
“Economic indicators are starting to reflect the ongoing, latest wave of infections,” which increases the chance of a cautious outlook, Okasan said.
But investors seem to be focusing on brighter news for the time being.
“Hopes that the additional stimulus, worth an estimated US$910 billion, will be agreed by the year end, and hopes that the distribution of (coronavirus) vaccines will help restore the economy are outweighing worries for now,” said Okasan.
“Many investors may be seeing the current rising stocks as a bubble. We expect the current ‘risk-on’ atmosphere, supported by ultra-easy monetary policies, will continue for the time being.”
The dollar stood at 104.11 yen, near flat from 104.19 yen on Friday in New York.
Among major shares, Toyota added 0.72% to 7,233 yen. Construction equipment maker Komatsu added 2.36% to 2,735 yen.
Nintendo added 0.60 % to 57,270 yen. Sony gave up early gains and fell 0.36% to 9,722. Uniqlo operator Fast Retailing also dropped 1.11% to 85,460 yen. – AFP, December 7, 2020
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