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Tokyo's Nikkei index closes at 26-year-high

Jan 23, 2018 13:37 PM GMT+0530 | 0 Comment(s)

Tokyo's benchmark Nikkei index closed at a 26-year high on Tuesday after Wall Street powered to another set of records following a deal to end the US government shutdown.

The Nikkei 225 index gained 1.29 percent or 307.82 points to end at 24,124.15, the highest since November 1991. The broader Topix index was up 1.01 percent or 19.15 points at 1,911.07.

The Tokyo market was driven from the opening by news from the United States, said Makoto Sengoku, market analyst at Tokai Tokyo Research Centre.

"The deal to keep the government funded, even for now, was positive," he said.

"Actually we believe this budget issue will not have a major lasting impact on the US economy.

"Investors are now paying more heed to an expected positive impact from tax cuts," rather than worrying about budgetary issues, he said, referring to optimism over President Donald Trump's tax overhaul.

The US Congress voted Monday to end a three-day shutdown and keep the government funded until February 8.

Word of the bargain struck among lawmakers in Washington sent all three New York stock indices soaring to fresh heights -- the eighth time this year that Wall Street has hit a trifecta of record finishes.

In Tokyo the market largely ignored the Bank of Japan's decision to keep its ultra-loose monetary policy in place, dealers said.

Sony surged 2.87 percent to 5,732 yen and SoftBank Group gained 2.01 percent to 9,458 yen. 

Mitsubishi Heavy Industries jumped 2.91 percent to 4,379 yen after the Nikkei business daily reported a subsidiary would boost production in Thailand of a component for electric vehicles.

The dollar was at 110.82 yen Tuesday afternoon against 110.92 yen in New York on Monday.


 

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