BUSINESS Tokyo stocks close higher as US Fed minutes reveal no surprises

BUSINESS

Tokyo stocks close higher as US Fed minutes reveal no surprises

Xinhua

19:44, July 07, 2022

File photo: Xinhua

TOKYO, July 7 (Xinhua) -- Tokyo stocks closed higher on Thursday following Wall Street's upbeat lead, with sentiment helped by the minutes from the U.S. Federal Reserve meeting in June providing no major shocks.

The 225-issue Nikkei Stock Average gained 382.88 points, or 1.47 percent, from Wednesday to close the day at 26,490.53.

The broader Topix index, meanwhile, added 26.36 points, or 1.42 percent, to finish at 1,882.33.

Local brokers said the market mood remained positive throughout the day after Wall Street's overnight rise in twine with the minutes of the two-day Fed policy meeting, released Wednesday, containing no major surprises regarding its aggressive policy position.

"There was no additional shock from the Fed's minutes," Shogo Maekawa, global market strategist at J.P. Morgan Asset Management, was quoted as saying.

"Recent positive U.S. economic data also erased concerns about economic uncertainties," Maekawa said.

However the market's upside was capped by rising COVID-19 cases across the country and reports that the government might suspend again its nationwide "Go To Travel" travel subsidy program, designed to kick-start the nation's ailing domestic travel industry.

By the close of play, rubber product, electric appliance and transportation equipment issues comprised those that declined the most, with issues that rose outpacing those that fell by 1,380 to 403 on the Prime Market, while 55 ended the day unchanged.

Chip-related issues advanced, with Tokyo Electron adding 1.9 percent, to become the biggest boost for the Nikkei, while industrial robotics maker Fanuc climbed 3.7 percent.

Air-conditioning maker Daikin Industries, for its part, finished the day 2.8 percent higher.

Travel and transportation issues lost ground, however, with Keisei Electric Railway losing 2.0 percent, while Central Japan Railway fell 0.9 percent, Japan Airlines dropped 1.2 percent by the close of play.

Meanwhile, travel agency H.I.S. retreated 0.4 percent, while Oriental Land, operator of Tokyo Disney Resort, slipped 0.8 percent.

On the Prime Market on Thursday, 1,278.95 million shares changed hands, dropping from Wednesday's volume of 1,389.15 million shares.

The turnover on the penultimate trading day of the week came to 2,992.21 billion yen (22.01 billion U.S. dollars).

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