Tokyo’s benchmark Nikkei index opened higher on Tuesday

Tokyo’s benchmark Nikkei index opened higher on Tuesday as part of a global rally on renewed economic optimism, despite worries over the lingering pandemic.

The Nikkei 225 rose 0.61 percent, or 173.00 points, to 28,742.02, while the broader Topix index gained 0.54 percent, or 10.50 points, to 1,963.83, reports BSS.

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The strong start came after Wall Street shares marked yet another set of record finishes, with investors staying optimistic about the global economic outlook despite nagging concerns about the coronavirus and its fast-spreading Delta variant.

“The global ‘risk-on’ atmosphere will serve as a tailwind while US indices continue to finish at new record closes,” Okasan Online Securities said in a note.

All three major US indices ended at records, with the Dow finishing just shy of 35,000 points. London’s FTSE 100 index and counterparts in Frankfurt and Paris also closed higher.

Tokyo shares had been slower than others to test higher resistance amid broad international rallies, the brokerage said.

But recent gains of Tokyo machinery shares on solid corporate earnings might see Japanese shares catch up with other global markets, Okasan said.

“Both in Japan and the US, upcoming announcements of corporate earnings should serve as a key,” Okasan said.

The dollar stood at 110.29 yen, nearly flat from 110.35 yen on Monday in New York.

Among major Tokyo shares, Toyota added 0.59 percent to 9,873 yen. Sony Group rose 1.18 percent to 11,620 yen. Uniqlo-operator Fast Retailing rose 1.28 percent to 81,640 yen. SoftBank Group added 1.39 percent to 7,645 yen.

Industrial robot maker Fanuc rose 1.25 percent to 27,880 yen. Chipmaker Murata Manufacturing added 0.23 percent to 9,134 yen.

 

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