TOKYO: Tokyo stocks closed higher for a fifth straight day on Thursday, with investors taking heart from recent rallies while awaiting a key US jobs report at the end of the week.
The benchmark Nikkei 225 index rose 0.63 percent, or 178.96 points, to end at 28,623.15, while the broader Topix index gained 0.97 percent, or 19.88 points, to 2,071.09.
“Caution about further acceleration of rate hikes spread against the backdrop of a tight US job market,” IwaiCosmo Securities said. “But the Tokyo market was buoyed following the strong performance of US high-tech stocks, especially chip-related shares,” the brokerage added.
Wall Street stocks were mixed overnight as markets weighed recession fears while a Federal Reserve report said inflation was persisting.
On Tuesday, Fed chair Jerome Powell triggered a sell-off by saying the “ultimate level of interest rates is likely to be higher than previously anticipated”.
In his subsequent address to US lawmakers on Wednesday, he said officials would look at all the available data before making a decision.
Traders are now awaiting the release of crucial US non-farm payrolls figures Friday, which will provide the latest snapshot of the world’s number one economy. Analysts said a forecast-beating number could put pressure on the Fed to ramp up rates at its next meeting.
The dollar stood at 136.68 yen, against 137.43 yen in New York on Wednesday.
Nikkei hits 3-1/2-month high on weaker yen, China optimism
Shortly before the opening bell, revised government data showed Japan’s economy did not grow in October-December, coming in at 0.0 percent, against a preliminary reading of a 0.2 percent expansion.
In Tokyo trading, industrial robot maker Fanuc gained 1.07 percent to 24,475 yen and Tokyo Electron, which makes tools to build semiconductors, jumped 1.24 percent to 48,640 yen.
Toyota added 0.62 percent to 1,919.5 yen while Honda grew 0.96 percent to 3,668 yen.
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