Tokyo stocks open higher following US tech rally

TOKYO: Tokyo stocks opened higher on Friday, tracking rises on Wall Street where tech shares surged while US yields retreated.

The benchmark Nikkei 225 index added 0.51 percent, or 151.79 points, at 29,860.77 while the broader Topix index rose 0.44 percent, or 8.64 points, to 1,960.50.

The dollar stood at 109.34 yen, compared with 109.26 yen on Thursday in New York.

The strong open came after global rallies, with the tech-rich Nasdaq index jumping 1.0 percent. The S&P 500 rose 0.4 percent to finish at a second straight all-time high. The Dow also added 0.2 percent.

"In the United States overnight, the movement of long-term yields calmed and major IT shares surged including GAFA," Okasan Online Securities said, referring to four top technology firms: Google-parent Alphabet, Amazon, Facebook and Apple.

"In Tokyo too, buying is expected for semiconductors and related shares," Okasan said.

Investors in Tokyo are also keeping a close eye on the government's plan for new coronavirus measures in Tokyo, Kyoto and Okinawa, with Covid-19 cases beginning to surge ahead of a holiday travel season from late April to early May.

The measures will focus largely on asking restaurants to close at 8:00 pm and urging citizens to refrain from making non-essential outings.

They come just three weeks after Japan lifted a state of emergency for the greater Tokyo region, and as the capital prepares to host the postponed Olympics this summer.

Among Tokyo shares, Toyota added 0.91 percent to 8,495 yen, and Sony Group soared 2.77 percent to 12,230 yen.

Industrial robot maker Fanuc jumped 2.47 percent to 28,680 while chipmaker Murata Manufacturing rose 0.80 percent to 9,244 yen.

Nintendo was up 0.40 percent to 65,020 yen.

Uniqlo operator Fast Retailing opened higher but soon came under pressure and fell 1.87 percent to 89,280 yen.

The firm reported a rise in profits on Thursday thanks to a strong performance in China and Japan, but declined to comment on controversy over clothing retailers sourcing cotton from the Chinese region of Xinjiang.