Tokyo stocks close higher on US recovery hopes

Economy

Tokyo | AFP

Tokyo stocks closed higher on Monday as investors cheered strong US jobs data that boosted optimism for recovery of the world’s biggest economy.

The benchmark Nikkei 225 index rose 0.79 percent, or 235.25 points, to 30,089.25, closing above the 30,000 mark for the first time in around two weeks.

The broader Topix index gained 0.60 percent, or 11.92 points, to 1,983.54.

Tokyo trade stayed solid throughout the day after US President Joe Biden celebrated a massive rebound in jobs in March, having recently unveiled a $2 trillion infrastructure spending plan.

“The Tokyo market simply reacted to the strong US payroll figures,” said Toshikazu Horiuchi, a broker at IwaiCosmo Securities.

Technical charts reflect brightening investor spirits, although profit-taking is expected once the Nikkei passes the 30,000 mark, SBI Securities said.

“We need fresh trading factors to boost the Nikkei further,” Horiuchi told AFP.

The dollar stood at 110.62 yen in Asian afternoon trade compared with 110.54 yen in New York last Friday.

The financial sector was recovering from recent declines in the wake of the Archegos stocks sale saga that has hit financial institutions worldwide.

Nomura Holdings jumped 4.29 percent to 596.8 yen as Mizuho Financial Group gained 2.81 percent to 1,626.5 yen.

“The financial sector is expected to stay on course to recovery unless another Archegos case emerges and hits the market,” Horiuchi said.

SoftBank Group rallied 2.10 percent to 9,993 yen as Sony gained 1.06 percent to 12,330 yen and Nintendo rose 0.63 percent to 63,340 yen.

hih-si/kaf/reb

AFP