TOKYO: Tokyo stocks ended sharply higher Monday after Wall Street rallied following slower jobs and wage growth data that reduced expectations of further US interest rate hikes.
The benchmark Nikkei 225 index was up 2.37 percent, or 758.59 points, to end at 32,708.48, while the broader Topix index added 1.64 percent, or 38.07 points, to 2,360.46.
The dollar stood at 149.50 yen, against 149.37 yen late Friday in New York, where the dollar eased against its major peers, including the yen.
On Wall Street Friday, when Tokyo was closed for a public holiday, the Dow Jones Industrial Average climbed 0.7 percent to finish at 34,061.32, the broad-based S&P 500 advanced 0.9 percent and the tech-heavy Nasdaq rose 1.4 percent.
Tokyo shares close higher on chip shares
US jobs data showed Friday that far fewer jobs than expected were created in October, fuelling hopes that the Federal Reserve would end its interest rate hiking cycle.
This, coupled with the fact that the yield on the 10-year US Treasury note temporarily retreated on Friday, “drove up all major three indexes – a trend the Japan market followed”, IwaiCosmo Securities said.
Positive earnings results from major Japanese firms added to the tailwind, the brokerage said.
Among major shares in Tokyo, SoftBank Group hiked 2.05 percent to 6,409 yen, Sony Group added 1.82 percent to 13,085 yen, and Toyota gained 3.11 percent to 2,846 yen.
Uniqlo operator Fast Retailing climbed 1.57 percent to 34,720 yen.
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