Tokyo shares end higher after global rallies

TOKYO: Tokyo shares advanced Wednesday following global rallies but gains remained limited as investors searched for new cues.

The benchmark Nikkei 225 index added 0.48 percent, or 128.32 points, to 27,120.53, while the broader Topix index rose 0.32 percent, or 6.03 points, to 1,912.92.

Robust gains on Wall Street overnight brightened spirits and encouraged investors to take risks, analysts said.

However, profit-taking capped gains in Tokyo after the Nikkei closed up nearly three percent on Tuesday.

Investors worldwide resumed active buying as a spate of softer US economic indicators tempered concerns over the US Federal Reserve’s campaign to increase rates to fight inflation.

The latest US labour data showed job openings sharply dropped in August, helping lift New York shares.

Tokyo stocks close higher on US gains

Reaction to the figures appears to be “a mix of caution over a possible recession and hopes for an easing of inflation”, Daiwa Securities said, noting that global “relief rallies” may have become too aggressive.

Now, market players are turning their focus to separate US jobs data due later in the week, as weak readings might further fan hopes for more moderate tightening by the American central bank.

Many investors are also awaiting a meeting of oil-producing countries, following reports that they want to cut production.

The dollar stood at 144.44 yen in Tokyo, compared with 144.09 yen seen Tuesday in New York.

Energy developer Inpex added 0.81 percent to 1,487 yen. Japan Petroleum Exploration Co added 0.68 percent to 3,710 yen.

Trading houses made early gains but then retreated, with Mitsubishi Corp inching up just 0.05 percent to 4,243 yen. Mitsui and Co added 0.27 percent to 3,294 yen.

Uniqlo operator Fast Retailing rose 0.92 percent to 78,580 yen.

Sony Group zigzagged between positive and negative regions and ended up 0.14 percent at 9,763 yen.