Tokyo: Shares jump on Wall Street gains

[TOKYO] Tokyo stocks jumped on Thursday after rallies on Wall Street, as investors watched corporate earnings in Japan.

The benchmark Nikkei 225 index ended up 1.8 per cent or 518.74 points at 29,331.37, while the broader Topix index advanced 1.5 per cent or 29.16 points to 1,927.40.

The Tokyo market reopened for its first session of the week after a series of public holidays.

The Nikkei was boosted by overnight gains on Wall Street, where the Dow index added 0.3 per cent as investors looked to corporate earnings with optimism.

The US dollar fetched 109.31 yen in Asian trade, against 109.19 yen late Wednesday in New York.

"The Nikkei made a strong start to the day as investors cheered gains in overseas shares during the holiday, with the Dow renewing its record high," SMBC Securities said.

Steel, mining and maritime logistics sectors enjoyed gains, the brokerage added.

But the Nikkei faced selling pressure in the afternoon as it approached the 29,500 mark.

Investors were also keeping an eye on what Prime Minister Yoshihide Suga might say later about the pandemic situation in Japan.

The capital Tokyo, western hub Osaka and other regions are under a virus state of emergency which requests that major businesses close and tells bars and restaurants to refrain from serving alcohol.

Mr Suga on Friday is expected to extend the emergency declaration beyond its May 11 end date, as the key urban areas have so far failed to meaningfully reduce case numbers despite calls for the public to stay home and avoid crowds.

"Prime Minister Suga's comment about the state of emergency is in focus," Okasan Online Securities said.

Among major shares, Nippon Steel roared 7.5 per cent to 2,050 yen. Top maritime logistics firm Nippon Yusen Kabushiki Kaisha gained 3.6 per cent to 4,445 yen.

Toyota added 2.9 per cent to 8,363 yen. Uniqlo operator Fast Retailing rose 3.4 per cent to 92,790 yen.

Sony Group gave up earlier gains and ended down 1.7 per cent to 10,715 yen. Nintendo shares also closed down 1.7 per cent at 61,610 yen ahead of the firm's earnings release later on Thursday.

AFP