TOKYO, March 1 ― Tokyo shares opened higher today after Wall Street avoided sharp selloffs on the Ukraine crisis, while investors awaited further economic news in the US.
The benchmark Nikkei 225 index added 1.20 per cent, or 317.84 points, to 26,844.66 in early trade, while the broader Topix index climbed 0.91 per cent, or 17.23 points, to 1,904.16.
The dollar stood at ¥115.05, compared with ¥114.93 seen yesterday in New York.
The Dow fell 0.5 per cent, but the Nasdaq added 0.4 per cent.
The Tokyo market lifted as investors' aversion to risk softened after US shares avoided sharp drops despite earlier concerns that broad financial sanctions against Russia and its banking institutions could dent the global economy.
“US shares were mixed... A sense of relief should cover Tokyo shares,” Okasan Online Securities said in a note.
“Once early buying subsides, we expect investors to take wait-and-see positions ahead of the release of ISM data (for US manufacturing activities) later today and Fed Chair (Jerome) Powell's Congressional appearance tomorrow,” it added.
Overnight, Raphael Bostic, president of Federal Reserve Bank of Atlanta, said he favoured raising interest rates by 25 basis points in March while adding that a 50-basis-point hike was also possible depending on the level of inflation.
“There are many major economic events expected in the US, and the market's focus may shift to US monetary policy,” Okasan said.
All eyes also remain on Ukraine, with leading democracies imposing broad sanctions targeting assets of Russian leaders and Russian financial institutions.
“The sense of uncertainty for the global economic outlook may increase as the US, Europe and Japan impose sanctions, but hopes for cease-fire negotiations are providing support for the market,” Okasan said.
“The market will remain sensitive to news headlines,” it said.
Among major shares, Toyota began the day in red but emerged above water and was trending up 0.02 percent to ¥2,139 by mid-morning, as the world's biggest automaker shuts down its domestic factories after a reported cyberattack on a parts supplier.
Troubled engineering conglomerate Toshiba was also up 3.87 per cent to ¥4,754 after local media reported top officials chief executive and chairman Satoshi Tsunakawa plan to step down.
The firm's management is facing loud opposition from some investors about its reform initiatives and plans to spin off a segment of its business, after allegations management attempted to weaken the influence of activist investors.
SoftBank Group rose 3.63 per cent to 5,311 yen. Uniqlo-operator Fast Retailing advanced 2.57 per cent to ¥63,420. Sony edged up 0.25 per cent to ¥11,840. ― AFP
