Tokyo shares open higher on US stimulus hopes

The benchmark Nikkei 225 index rose 0.27 per cent, or 63.84 points, to 23,630.88 in early trade, while the broader Topix index gained 0.53 per cent, or 8.68 points, to 1,634.42. — AFP pic
The benchmark Nikkei 225 index rose 0.27 per cent, or 63.84 points, to 23,630.88 in early trade, while the broader Topix index gained 0.53 per cent, or 8.68 points, to 1,634.42. — AFP pic

TOKYO, Oct 21 —  Tokyo shares opened higher today after renewed hopes for a US stimulus package lifted Wall Street overnight.

The benchmark Nikkei 225 index rose 0.27 per cent, or 63.84 points, to 23,630.88 in early trade, while the broader Topix index gained 0.53 per cent, or 8.68 points, to 1,634.42.

“The Tokyo market is expected to start on a strong footing with momentum kept from overnight gains on Wall Street on the back of hopes for additional economic measures” in the United States, Okasan Online Securities said in a note to clients.

In a dramatic political development, US House Speaker Nancy Pelosi told media that lawmakers were starting to write stimulus-spending legislation, and voiced optimism that it can win bipartisan support.

If a deal is reached, Tokyo stocks would gain further, although investors may refrain from major market moves until after the US election, Okasan said.

Hopes for the successful development of coronavirus vaccines also brightened investors’ spirits, after US drugmaker Moderna said its vaccine could become available in the country from December under emergency-use authorisation, the brokerage added.

The dollar stood at ¥105.45 (RM437.56), flat from New York yesterday.

Among major shares, Toyota jumped 2.09 per cent to ¥7,041, while Sony rose 0.95 per cent to ¥7,975.

Japan Airlines soared 4.14 per cent to 2,062, while rival ANA Holdings also surged 3.24 per cent to ¥2,450, as Japan gradually opens up international travel to and from nations with low coronavirus infection rates.

Construction equipment maker Komatsu jumped 1.49 per cent to ¥2,451.5. — AFP

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