Tokyo shares open higher on New Year trade

The Nikkei 225 rose 1.01 per cent, or 291.01 points, to 29,082.72 in early trade, while the broader Topix index added 0.88 per cent, or 18.19 points, to 2,010.52. — Reuters pic
The Nikkei 225 rose 1.01 per cent, or 291.01 points, to 29,082.72 in early trade, while the broader Topix index added 0.88 per cent, or 18.19 points, to 2,010.52. — Reuters pic

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TOKYO, Jan 4 ― Tokyo stocks opened 2022 on an upbeat note today, after US shares also advanced on their first trading day of the year.

The Nikkei 225 rose 1.01 per cent, or 291.01 points, to 29,082.72 in early trade, while the broader Topix index added 0.88 per cent, or 18.19 points, to 2,010.52.

The dollar stood at ¥115.31 (RM4.17), slightly off from ¥115.47 in New York overnight.

Tokyo reopened for the first trading day of the year after the Dow and S&P 500 on Wall Street ended at records Monday with investors cheering Apple's valuation climbing to US$3 trillion.

The pandemic and inflation continue to pose risks going forward, but expectations for bright corporate earnings should help drive up the Tokyo market through the year, Okasan Online Securities said in a note.

“We expect the Tokyo market to test its upside as we move through the year,” the brokerage said.

“We see a lot of profoundly uncertain factors ahead, such as new coronavirus variants, (potential) rate hikes and inflation.

“But Japan Inc is steadily regaining its strength and ability to earn profits again even amid the pandemic,” and share prices should reflect that, Okasan said.

The brokerage said it was “probable” that the market would remain lukewarm for several months until new annual corporate earnings outlooks become clear.

“We expect the market to test its upside especially in the latter half of the year” when investors should have clearer pictures of the outlook for corporate earnings in the year, Okasan said.

Among major shares, Sony Group jumped 2.42 per cent to ¥14,825. SoftBank Group firmed 0.70 per cent to ¥5,472.

Toyota roared 3.21 per cent to ¥2,173.

Chipmaker Murata Manufacturing added 1.23 per cent to ¥9,270 while Advantest, a major producer of testing kits for semiconductors, jumped 3.12 per cent to ¥11,240.

Mitsubishi UFJ Financial Group firmed 0.85 per cent to ¥630.2.

But Fast Retailing, which operates Uniqlo, slipped 1.21 per cent to ¥64,520. ― AFP

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