Tokyo shares open higher after Wall Street gains

TOKYO: Tokyo shares opened higher Monday after Wall Street firmed, with solid Japanese corporate earnings also fuelling investors' risk appetite.

The benchmark Nikkei 225 index added 0.79 percent, or 212.67 points, to 27,225.92, while the broader Topix index was up 1.03 percent, or 19.41 points, to 1,900.09.

The dollar stood at 109.89 yen, compared with 109.80 yen on Friday.

"The Tokyo market will likely test the upside as investors cheer gains by Wall Street shares" on Friday, Okasan Online Securities said in a note.

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"Buying returned for blue chip shares and lifted the Nikkei," the brokerage said.

On Friday, the Dow added 0.7 percent, while the Nasdaq rose 1.2 percent despite lingering concerns over the fast-spreading Covid-19 Delta variant, the Federal Reserve's taper plans, and China's regulatory crackdown.

The market is shifting its focus to Fed Chair Jay Powell's address at this year's Jackson Hole symposium, which will be held online from Friday.

Investors will be watching closely, including for "whether he too will play up near-term downside economic risks due to the spread of the Delta Covid variant," said Ray Attrill of National Australia Bank.

Tokyo investors will also be eyeing domestic politics as Prime Minister Yoshihide Suga faces a fresh political crisis after the candidate he supported in the Yokohama mayoral race lost, and with the public frustrated at the government's handling of the pandemic.

Suga is from Yokohama, south of Tokyo, and the candidate was previously a minister serving in his government.

Among major shares in Tokyo, Sony Group jumped 3.01 percent to 10,940 yen. Toyota surged 3.02 percent to 9,184 yen. Panasonic rose 1.92 percent to 1,247.5 yen.

Advantest, producer of testing kits for semiconductors, rose 0.45 percent to 8,880 yen.

But SoftBank Group fell 1.46 percent to 6,062 yen.