Tokyo stocks close higher ahead of US jobs data

Economy

Tokyo | AFP

Tokyo stocks closed higher Friday, extending a rally on Wall Street with investor focus shifting to key US jobs data due later in the day.

The benchmark Nikkei 225 index rose 1.58 percent, or 465.13 points, to end at 29,854.00, while the broader Topix index gained 0.71 percent, or 13.98 points, to 1,971.62.

“The Nikkei index rose after the US indexes finished higher but the gains on the Japanese markets narrowed due to profit-taking,” said senior strategist Yoshihiro Ito of Okasan Securities.

Traders are keeping tabs on the release of key non-farm US payrolls figures, which will give the latest snapshot of the world’s top economy as it recovers from the pandemic.

In Tokyo trading, market heavyweight Softbank Group jumped 4.21 percent to 9,787 yen while Uniqlo casual wear operator Fast Retailing climbed 2.85 percent to 90,470 yen.

Sony surged 4.72 percent to 12,200 yen while Toyota advanced 0.46 percent to 8,462 yen.

However, the financial sector weakened, with Mizuho Financial Group falling 0.81 percent to 1,582 yen after a report said the bank may have lost around $90 million in the Archegos stocks-sale saga.

A fire sale late last month by Archegos Capital Management, which looks after the fortune of businessman Bill Hwang, has left major global banks from Japan’s Nomura to Switzerland’s Credit Suisse counting losses.

Mizuho’s reported losses are far smaller than those incurred by some financial institutions, with Nomura warning of up to $2 billion in exposure.

Mitsubishi UFJ Financial Group lost 0.43 percent to 592.5 yen. The company’s brokerage house said this week it could face a $300 million loss in its dealings with a US client.

The dollar fetched 110.54 yen in Asian trade, against 110.62 yen in New York late Thursday.

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AFP