TOKYO: Tokyo stocks opened higher on Thursday, extending rallies on Wall Street after the US Federal Reserve signalled a more muscular stance on inflation.
The benchmark Nikkei 225 index was up 1.41 percent, or 400.67 points, at 28,860.39 in early trade, while the broader Topix index rose 1.11 percent, or 22.10 points, to 2,006.20.
"Japanese shares are being driven up by the sharp rally in US shares, as a sense of relief spreads" following the US central bank meeting, senior strategist Yoshihiro Ito of Okasan Online Securities said.
The endorsement of Moderna's coronavirus vaccine for booster shots by a Japanese health ministry panel "prompted hopes that the third jab drive will accelerate", contributing to rallies in the Tokyo market, he added.
The dollar fetched 114.17 yen in early Asian trade, against 114.02 yen in New York late Wednesday.
Gains in Tokyo followed a strong rebound in US stocks, after the Fed said it would accelerate the wind-down of its stimulus bond-buying programme.
The central bank said it will phase out stimulus measures more quickly, ending them in March, which would then allow it to raise lending rates as soon as May.
After admitting recently that he and his colleagues miscalculated how far prices would rebound in the wake of the pandemic crisis, Fed chair Jerome Powell has pledged to fight to ensure inflation does not become entrenched in the economy.
The Fed tapering decision "and plans to hike rates three times next year was within market expectations", Daiwa Securities said, while other analysts agreed it had prompted a sense of relief among investors.
In Tokyo, Toyota was climbed 1.98 percent to 2,160.5 yen, Sony was up 1.29 percent at 14,180 yen, and Canon rallied 3.88 percent to 2,772.5 yen.
Japan lodged a trade deficit of 954.8 billion yen ($8.3 billion) in November, the fourth consecutive monthly deficit as growth in imports due to surging fuel prices offset the rise in exports, according to finance ministry data released before the opening bell.
The data did not prompt a strong market reaction.
Comments
Comments are closed.