Tokyo shares open higher as investors look to US jobs data

TOKYO: Tokyo shares opened higher on Wednesday despite falls on Wall Street overnight, as investors shifted their focus to US employment data.

The benchmark Nikkei 225 index firmed 0.40 percent, or 111.13 points, to 28,200.67 in early trade, while the broader Topix index rose 0.42 percent, or 8.29 points, to 1,968.99.

The dollar stood at 110.06 yen, little changed from 110.00 yen in New York Tuesday.

Tokyo stocks close higher

Tokyo shares have been enjoying an upswing in recent days, thanks in part to a decline in the daily coronavirus infection numbers in Japan, SMBC Nikko Securities said in a note.

International efforts to fight the Delta variant and general consensus over the benefits of booster vaccine shots are also encouraging buying, the brokerage said.

The recent momentum could mean the Nikkei index may target 28,500, Okasan Online Securities said.

"If the buy-back trend were to strengthen... (another) surge is possible," Okasan said, adding it expects mixed trade in Tokyo for now.

"In the immediate term, investors are eager to see US employment data" due Friday.

"Its impact however remains unclear. Weak data are expected. That could mean uncertainty for the recovery of the US jobs sector and increase the likelihood the Federal Reserve maintain a cautious stance" on rate hikes, Okasan added.

Japanese media meanwhile was focused on speculation about when Prime Minister Yoshihide Suga will call an election as he struggles with record-low approval ratings.

"If the ruling coalition loses seats, it may weaken the government but will press them towards expansionist fiscal policies and could result in economic benefits" that lift the market, SMBC Nikko said.

Among major shares, Toyota rose 0.52 percent to 9,642 yen. Sony Group rose 0.48 percent to 11,415 yen.

Uniqlo operator Fast Retailing firmed 0.88 percent to 73,160 yen.

Mitsubishi UFJ Financial Group added 1.24 percent to 601.8 yen.

Nippon Steel dropped 0.73 percent to 2,231.5 yen.

Tokyo Electron, which makes tools to build semiconductors, fell 0.32 percent to 47,090 yen.