TOKYO: Tokyo’s key Nikkei index closed over two percent higher on Thursday, extending rallies on Wall Street after the US Federal Reserve signalled a more muscular stance on inflation.
The Nikkei 225 jumped 2.13 percent, or 606.60 points, to end at 29,066.32, while the broader Topix index gained 1.46 percent, or 28.98 points, to 2,013.08.
“A sense of relief emerged after the Fed’s decision,” senior strategist Yoshihiro Ito of Okasan Online Securities said.
The approval of Moderna’s Covid-19 vaccine for boosters in Japan “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 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 Fed tapering decision “and plans to hike rates three times next year was within market expectations”, Daiwa Securities said.