TOKYO: Tokyo shares opened higher on Tuesday after a three-day weekend, despite falls of US shares on oil prices and the Fed’s hawkish comments on inflation.
The benchmark Nikkei 225 index climbed 0.98 percent or 263.89 points to 27,091.32 at the open, while the broader Topix index added 0.72 percent or 13.66 points to 1,922.93.
Fed Chair Jerome Powell said Monday the US central bank is prepared to raise interest rates by more than the quarter-point hike announced last week if that is needed to contain “much too high” inflation.
“Powell’s speech in which he indicated his intentions for a 0.5 percent interest rate hike and shrinking of the balance sheet if necessary, has pushed US treasury rates higher,” Okasan Online Securities said in a note.
Tokyo shares flat in early trade
“But the decline in US shares was modest and the market is steadily factoring it in.”
US stocks weakened after Powell’s remarks, with the Dow Jones Industrial Average finishing down 0.6 percent.
The broad-based S&P 500 slipped less than 0.1 percent while the tech-rich Nasdaq Composite Index dropped 0.4 percent.
In Tokyo trading, automakers were higher with Toyota rising 1.88 percent to 2,058 yen, Honda advancing 0.62 percent to 3,363 yen and Nissan climbing 2.29 percent to 517 yen.
Suzuki Motor jumped 2.90 percent to 4,180 yen following the Sunday announcement of $1.3 billion investment into electric vehicle and battery production in India.
Sony was up 0.64 percent to 12,505 yen after saying on Monday its subsidiary Sony Interactive Entertainment will acquire Montreal-based game company Haven Entertainment Studios, founded by Assassin’s Creed co-creator Jade Raymond.
The dollar fetched 120 yen, up from 119.47 in New York on Monday and 118.78 yen in Tokyo on Friday.
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