The Business Times

Tokyo: Stocks open higher on record US closes

Published Tue, Jun 15, 2021 · 09:04 AM

[TOKYO] Tokyo stocks opened higher on Tuesday as investors took heart from record closes on the Nasdaq and S&P 500, though caution lingered ahead of the Fed meeting this week.

The Nikkei 225 index was up 0.3 per cent or 99.39 points at 29,261.19 in early trade, while the broader Topix index advanced 0.2 per cent or 3.38 points to 1,963.13.

"Japanese shares are seen starting with gains following US rallies, but a wait-and-see attitude for investors will likely increase" ahead of the US Federal Reserve's policy decision on Wednesday, chief strategist Yoshihiro Ito of Okasan Online Securities said in a note.

This week's calendar is dominated by the Fed's two-day policy meeting, which is expected to see central bankers raising their inflation forecasts.

The Fed is expected to maintain its current policy of accommodation, but central bank chief Jerome Powell will face myriad questions about prices during a news conference.

One of the focuses "is when (the Fed) will announce tapering (of its easing policy) but market consensus is that it won't be in this meeting," Ito of Okasan said.

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The dollar fetched 110.06 yen in early Asian trade, against 110.08 yen in New York late Monday.

In Tokyo, Sony was up 2.13 per cent at 11,050 yen and Panasonic was up 0.2 per cent at 1,266.5 yen.

Toshiba was off 1.89 per cent at 4,680 yen after it apologised following a probe into its alleged attempts to influence a shareholder vote.

Shipping firm Nippon Yusen was down 1.12 per cent at 5,290 yen after a report it will order 12 LNG car carriers for 100 billion yen (S$12.1 billion), while its rival Mitsui OSK Line was off 1.41 per cent at 4,910 yen.

On Wall Street, the tech-rich Nasdaq jumped 0.7 per cent while the S&P gained 0.2 per cent to 4,255.15, both scoring new records, but the Dow slipped 0.3 per cent to 34,393.

AFP

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