Tokyo stocks close higher, extending US rallies

TOKYO: Tokyo stocks closed higher on Monday, extending rallies on Wall Street after cautious comments from Federal Reserve chief Jerome Powell on a potential withdrawal of its massive easing this year.

The benchmark Nikkei 225 index rose 0.54 percent, or 148.15 points, to 27,789.29, while the broader Topix index advanced 1.11 percent, or 21.37 points, to 1,950.14.

"The Tokyo market largely tracked US gains, welcoming Fed chair Powell's comments," said Yoshihiro Okumura of Chibagin Asset Management.

European stocks drop at open

Powell's address last week was closely watched for signs the Fed could be planning to reduce the bond-buying that has helped support the pandemic recovery, and for indications of when the bank sees interest rates rising.

He stressed that there was no hurry to raise rates, arguing that current inflation pressures will be temporary, and repeated the Fed's stance that "it could be appropriate to start reducing the pace of asset purchases this year."

Traders in Tokyo remained cautious, shifting their focus to US unemployment figures due on Friday, Okumura said.

"It's hard to hold a long position before seeing the payroll figures," Okumura told AFP.

The dollar fetched 109.74 yen in Asian afternoon trade, against 109.82 yen in New York late Friday.

Takeda rose 0.46 percent to 3,665 yen on bargain-hunting following recent declines after the drugmaker and the government said Japan would halt the use of more than one million doses of Moderna's Covid vaccine, following reports of contamination in several vials.

Takeda is in charge of sales and distribution of the Moderna shot in Japan.

Nissan jumped 1.80 percent to 579.4 yen and Mitsubishi Motors surged 2.93 percent to 281 yen after they announced sales of low-price electric compact cars jointly developed by the two automakers.