Tokyo: Stocks open higher on US rallies

[TOKYO] Tokyo stocks opened higher on Friday as investors took heart from US rallies, despite a spike in coronavirus cases that prompted fears of a fresh wave in the pandemic.

The benchmark Nikkei 225 index climbed 0.9 per cent or 200.89 points to 22,460.68 in early trade, while the broader Topix index gained 0.7 per cent or 11.01 points to 1,572.86.

"The Japanese market is advancing on the backdrop of rallies in US shares," said Okasan Online Securities, predicting that investors would be unlikely to gamble too heavily ahead of the weekend.

Analysts were balancing the negative impact of a potential second coronavirus wave with the floods of money pumped into the market by financial authorities.

The US dollar fetched 107.12 yen in early Asian trade, against 107.16 yen in New York on Thursday.

In Tokyo, automakers were among the gainers, with Toyota climbing 1.2 per cent at 6,875 yen, Honda up 0.8 per cent at 2,802 yen and Nissan higher by 1 per cent at 409.1 yen.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Japanese banks also gained after the US banking sector rallied on the Federal Reserve's announcement it was loosening rules on investments in risky assets.

Sumitomo Mitsui Financial rose 1.5 per cent to 3,066 yen and Mitsubishi UFJ Financial gained 1.3 per cent to 432.1 yen.

After a topsy-turvy session on Wall Street, the Dow finished up 1.2 per cent at 25,745.60.

AFP