Tokyo stocks opened higher on Thursday

Tokyo stocks opened higher on Thursday as investors took heart from a Wall Street rebound, with hopes for stimulus under the next government in Japan continuing to support the market.

The benchmark Nikkei 225 index was up 0.25 percent, or 75.28 points, at 30,586.99 in early trade, while the broader Topix index rallied 0.24 percent, or 5.00 points, to 2,101.39, reports BSS.

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“Market sentiment improved significantly after US shares rebounded,” senior strategist Yoshihiro Ito of Okasan Online Securities said in a note.

“A day before campaigning begins in the (ruling) Liberal Democratic Party’s leadership election, hopes are staying high for (economic stimulus) policy under a new government,” he said.

The continued decline in coronavirus cases in Japan is also helping to boost the market, he added.

The dollar fetched 109.41 yen in early Asian trade, against 109.36 yen in New York late Wednesday.

In Tokyo, Toyota was up 0.75 percent at 9,950 yen after a report said it plans to increase inventory of semiconductors.

Nissan was 0.28 percent higher at 574 yen after the same report said the carmaker is also mulling a similar move.

Among other major shares, Uniqlo casual wear operator Fast Retailing was up 1.11 percent at 75,780 yen, shipping firm Mitsui O.S.K. Lines was up 1.81 percent at 9,570 yen, and Nippon Steel was up 1.17 percent at 2,334 yen.

Japan booked a trade deficit of 635.4 billion yen ($5.8 billion) in August against market expectations of a 2.9 billion yen surplus, according to finance ministry data released before the opening bell.

The figure was the result of rising imports that overwhelmed an increase in exports, but the data did not prompt strong market reaction.

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