Tokyo: Stocks open higher on stable yen, rallies in US

[TOKYO] Tokyo stocks opened higher on Thursday helped by a sharp rebound in Wall Street shares and a halt in the yen's appreciation against the dollar.

The benchmark Nikkei 225 index gained 1.15 per cent or 243.68 points to 21,343.74 in early trade, while the broader Topix index was up 1.16 per cent or 17.40 points at 1,519.90.

"A surge in US shares and a lull in the yen's appreciation are helping a rebound in Japanese shares," Yoshihiro Ito, chief strategist at Okasan Online Securities, said in a commentary.

The dollar fetched 107.54 yen in early Asian trade, against 107.55 yen in New York late Wednesday.

Wall Street stocks rocketed higher, as Joe Biden's strong performance in the US Democratic primary shifted focus from the coronavirus outbreak.

Mr Biden's success in the Super Tuesday contests transformed the landscape in the Democratic battle for the right to take on President Donald Trump, establishing the former vice-president as a major rival to leftist Bernie Sanders, who has worried investors.

In Tokyo, major blue-chip exporters rallied, with Sony trading up 1.67 per cent at 6,925 yen, Toyota up 0.63 per cent at 7,018 yen and chip-making equipment manufacturer Tokyo Electron up 1.07 per cent at 23,095 yen.

Takeda Pharmaceutical rallied 3.40 per cent to 3,892 yen after it announced it will develop a medicine to cure the new coronavirus.

On Wall Street, the Dow ended up 4.5 per cent at 27,090.86.

AFP