Tokyo stocks open higher after US gains

TOKYO: Tokyo stocks opened higher on Tuesday as investors cheered gains on Wall Street while keeping a cautious eye on Chinese shares.

The benchmark Nikkei 225 index added 0.59 percent, or 155.59 points, at 26,746.37, while the broader Topix index firmed 0.36 percent, or 6.69 points, to 1,884.09.

The dollar stood at 127.59 yen, off from 128.15 yen on Monday in New York.

Shares tracked US gains after the Dow closed up 0.7 percent while the tech-rich Nasdaq index added 1.3 percent. But the market may lose its sense of direction later in the day, analysts said, ahead of a set of public holidays known in Japan as Golden Week.

Traders in Tokyo will take a break on Friday. Then, after operating normally on Monday, the market will close for three straight days before reopening on Friday April 6.

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“It’s hard to expect investors to take risks ahead of Golden Week, when various things can happen,” including a US Fed meeting due on May 3 and 4, Okasan Online Securities said.

“Investors are ramping up caution over the outlook of Chinese shares, with extended lockdowns fanning fears of economic slowdown,” it said, adding that “nervous trading is expected.”

In Tokyo, tech-related shares rose after broad US gains.

SoftBank Group rose 2.10 percent to 5,094 yen.

Chipmaker Murata Manufacturing added 0.31 percent to 7,780 yen.

Tokyo Electron added 0.81 percent to 55,790 yen and Advantest added 1.32 percent to 8,440 yen.

But some blue-chip issues slipped. Nintendo fell 0.62 percent to 62,560 yen. Toyota fell 0.80 percent to 2,172.5 yen and Sony Group lost 0.72 percent to 11,025 yen.