Tokyo stocks close at three-month high on virus optimism

The benchmark Nikkei 225 index ended up 2.32 per cent, or 497.08 points, at 21,916.31, while the broader Topix index was up 1.80 per cent, or 27.87 points, at 1,577.34. — AFP pic
The benchmark Nikkei 225 index ended up 2.32 per cent, or 497.08 points, at 21,916.31, while the broader Topix index was up 1.80 per cent, or 27.87 points, at 1,577.34. — AFP pic

TOKYO, May 28 — Tokyo stocks soared today to a three-month high on optimism over the gradual reopening of virus-hit economies worldwide, as investors also kept a close eye on US-China tensions over Hong Kong.

The benchmark Nikkei 225 index ended up 2.32 per cent, or 497.08 points, at 21,916.31, while the broader Topix index was up 1.80 per cent, or 27.87 points, at 1,577.34.

“Japanese shares are supported by US rallies” with traders bullish on the reopening of the US and Japan, said Toshiyuki Kanayama, senior market analyst at Monex.

Concerns, however, for a simmering row between the US and China over Hong Kong’s special status are putting a brake on the euphoria, analysts said.

“A sense of overheating in the market and worries over the US-China row grew in later trade,” said Daiwa Securities.

The dollar fetched ¥107.86 (RM4.36) in Asian trade, against ¥107.77 in New York yesterday.

In Tokyo, airlines were among the winners, with Japan Airlines rising 1.18 per cent to ¥2,212.5 and ANA Holdings ending up 0.76 per cent at ¥2,691.5.

Honda rallied 3.07 per cent to ¥2,898 and Toyota climbed 3.45 per cent to ¥6,973.

Market heavyweight and Uniqlo casual wear operator Fast Retailing rallied 3.70 per cent to ¥59,110.

Nissan surged 8.15 per cent to ¥449.4 and Mitsubishi Motors climbed 6.36 per cent to ¥334 after their three-way alliance with Renault unveiled plans to deepen cooperation

Later today, Nissan is scheduled to release its earnings report for the business year ended in March. — AFP

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