Tokyo shares firm in morning trade

TOKYO: Tokyo stocks trended higher Thursday, with a lower yen buoying exporters despite overnight falls of US shares.

The benchmark Nikkei 225 index added 0.22 percent, or 61.85 points, at 28,296.14, while the broader Topix index rose 0.24 percent, or 4.67 points, to 1,974.65.

The yen’s weakness against major currencies continued to provide solid support for shares of Tokyo exporters, analysts said, although the overall market could take a breather after recent gains.

The dollar stood at 134.41 yen, around a 20-year high, against 134.29 yen overnight in New York.

Wall Street shares fell on lingering worries about inflation while US yields trended higher.

“Currently Tokyo shares are showing resilience after US shares fell.

Tokyo shares open higher as yen heads south

But the Nikkei average gained 820 yen over the last four straight winning sessions and 1,600 yen in the past two weeks without facing notable adjustment pressure,“ Okasan Online Securities said in a note.

“Some players may opt to take profits,” it said, adding that there was still “healthy appetite for dip buying.”

The global market was on less certain footing amid concerns about inflation, the economic outlook, oil prices, Russia’s war on Ukraine and the direction of US yields.

Rising oil prices are also fueling “inflationary concerns and the need for central banks to increase their hawkishness”, Rodrigo Catril of National Australia Bank wrote in a note.

Equity markets continue to zigzag, he wrote, “unable to establish a new up or down trend.”

Among major Tokyo shares, Toyota added 0.99 percent to 2,252 yen. SoftBank Group jumped 3.04 percent to 5,732 yen.

Nintendo rose 2.12 percent to 60,200 yen.

Uniqlo-operator Fast Retailing added 0.44 percent to 68,800 yen.

Energy developer INPEX rose 2.91 percent to 1,801 yen. Mitsubishi UFJ Financial Group rose 0.50 percent to 746.2 yen.

Meanwhile, Sony Group trimmed earlier gains and stood up 0.08 percent to 12,355 yen. Leading shipping firm Nippon Yusen plunged 5.48 percent to 10,010 yen.