BUSINESS Tokyo stocks open higher on US rallies, cheaper yen

BUSINESS

Tokyo stocks open higher on US rallies, cheaper yen

AFP

09:25, June 08, 2020

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File photo

Tokyo stocks opened higher on Monday, breaking through the 23,000-point mark as investors took heart from rallies on Wall Street and a cheaper yen against the dollar.

The benchmark Nikkei 225 index climbed 1.05 percent or 240.17 points to 23,103.90 in early trade, while the broader Topix index gained 0.86 percent or 13.77 points to 1,626.25.

"Japanese shares are supported by sharp rallies in the US market and depreciation of the yen, with (the Nikkei 225) rising above the 23,000-mark" that should provide a psychological boost to the market, said chief strategist Yoshihiro Ito of Okasan Online Securities.

Wall Street stocks surged Friday following a surprisingly strong US jobs report, which markets viewed as proof the economy was recovering from the coronavirus crisis.

The Labor Department reported the US economy regained 2.5 million jobs in May and the unemployment rate dropped as pandemic shutdowns began to ease.

The report defied even the most optimistic forecasts among economists, who had been expecting a payroll decline of more than eight million and a jobless rate of 20 percent or higher.

In Tokyo, airlines were among the winners, with Japan Airlines climbing 4.75 percent to 2,490 yen and ANA Holdings jumping 4.71 percent to 2,915 yen.

Banks were also higher, with Mitsubishi UFJ Financial gaining 4.13 percent to 481.7 yen and Sumitomo Mitsui trading up 4.21 percent at 3,417 yen.

On Wall Street, the Dow ended up 3.2 percent at 27,110.98.

The dollar fetched 109.55 yen in early Asian trade, against 109.61 yen in New York late Friday.


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