TOKYO: Tokyo stocks closed higher Thursday after minutes from a Federal Reserve meeting showed that US central bankers are determined to fight inflation despite recession worries.
The benchmark Nikkei 225 index rose 1.47 percent, or 382.88 points, to 26,490.53, while the broader Topix index ended up 1.42 percent, or 26.36 points, at 1,882.33.
The dollar was at 135.87 yen, compared with 135.93 yen on Wednesday in New York.
Tokyo shares enjoyed an upward swing after Wall Street stocks ended higher, taking cues from the Fed minutes, in which officials said a “more restrictive stance” could “be appropriate if elevated inflation pressures were to persist”, even at the risk of slowing growth.
The minutes suggested that “the July rates decision is about 50 or 75 basis points”, as policymakers work to control soaring inflation, Ray Attrill of National Australia Bank said in a note.
The message was expected, but delicate work to balance slowdown risks and fight inflation still lie ahead, said Stephen Innes of SPI Asset Management.
“So, stocks are bouncing higher with the global market backdrop not quite as gloomy as Tuesday; for markets, the most significant challenge right now is to break out of this negative feedback loop with recession risk and stubbornly hawkish Fed prices cratering the runway,” he wrote in a note.
The Tokyo market benefited from the overnight gains on Wall Street, but some investors were seen “taking a wait-and-see attitude ahead of” key US jobs data due later this week, Mizuho Securities said in a note.
In Tokyo, automakers were among winners, with Toyota climbing 2.28 percent to 2,105 yen and Honda rallying 1.46 percent to 3,207 yen.
Real estate firms were also higher. Mitsubishi Estate Company added 2.71 percent to 1,951 yen and Nomura Real Estate Holdings rose 2.22 percent to 3,230 yen.
Sony Group surged 3.65 percent to 11,225 yen, industrial robot maker Fanuc rallied 3.75 percent to 21,880 yen, and chip-making equipment maker Tokyo Electron gained 1.90 percent to 42,820 yen.
But shipping firm Mitsui O.S.K. Lines ended down 0.70 percent at 2,989 yen, and Sumitomo Metal Mining was down 0.90 percent at 3,843 yen.