Tokyo’s Nikkei opens up more than 3%
The rise in Tokyo stocks came after US and European markets roared last week (Kazuhiro NOGI)
Tokyo (AFP) – Tokyo stocks opened up more than 3.0 percent on Monday, following European and US markets that roared last week on strong US data and dovish comments from the Federal Reserve.
The benchmark Nikkei 225 index added 3.06 percent, or 598.00 points, to 20,159.96 in early trade while the broader Topix index jumped 3.05 percent, or 44.83 points, to 1,515.99.
The robust open in Tokyo came as global investors embraced a strong US jobs report and dovish statements from Fed Chairman Jerome Powell last week.
In recent weeks, investors have aggressively sold down Tokyo shares on general worries about the US economic outlook and earlier falls on Wall Street.
On Friday alone, the Nikkei lost 2.26 percent.
But investors perked up on the positive news from the US, where the Dow Jones finished up 3.3 percent on Friday.
“The Nikkei index gained across the board and went beyond 20,200 as investors’ worries receded and encouraged buyback of shares,” Okasan Online Securities said in a commentary.
Looking ahead, investors kept their eyes on trade ties between Washington and Beijing, with delegations from both sides set to hold negotiations Monday.
“Many investors want to see the direction of the US-China trade talks and are also watching foreign exchange rates,” Okasan said.
In the forex market, the dollar stood at 108.53 yen, firming from 108.44 yen in New York on Friday.
Among major gainers, Uniqlo-operator Fast Retailing rose 3.20 percent to 55,220 yen. Sony soared 5.06 percent to 5,444 yen, and Toyota added 3.72 percent to 6,582 yen.
Takeda, which is drawing close to finishing a takeover of Irish pharmaceutical firm Shire, jumped 7.24 percent to 3,984 yen.
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