Tokyo stocks open higher as Wall Street rises
AFP – Tokyo stocks opened higher on Tuesday after Wall Street powered to another set of records on a deal to end a three-day government shutdown in Washington.
The benchmark Nikkei 225 index gained 0.45 percent or 107.92 points to 23,924.25 in early trade while the broader Topix index was up 0.37 percent or 7.06 points at 1,898.98.
The Bank of Japan will wrap up a two-day policy meeting later Tuesday but the market consensus is that there will be no policy shift.
Instead, the Tokyo market opened driven 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.
Tokyo’s Nikkei has also been hovering around its 26-year highs on robust corporate earnings and global stock rallies.
In Tokyo trading in individual stocks on Tuesday, Sony rose 1.31 percent to 5,645 yen and SoftBank Group gained 0.66 percent to 9,333 yen.
Mitsubishi Heavy Industries jumped 2.23 percent to 4,350 yen after the Nikkei business daily reported a subsidiary would boost production in Thailand of a component for electric vehicles.
The dollar was at 110.91 yen on Tuesday against 110.92 yen in New York.