TOKYO, Jan 8 ― Tokyo’s benchmark Nikkei index jumped more than 2.3 per cent today, extending Wall Street rallies with investors bullish despite the virus state of emergency declared in and around the Japanese capital.
The Nikkei 225 gained 2.36 per cent, or 648.90 points, to close at 28,139.03 ― another 30-year high ― while the broader Topix index rose 1.57 per cent, or 28.64 points, to 1,854.94.
Tokyo shares gained ground from the outset after Wall Street surged to fresh records yesterday as the Democrats secured a slim majority in Congress following the Georgia runoff elections.
“With the election result, (President-elect Joe) Biden will push through more stimulus,” said Shinichi Yamamoto, a broker at Okasan Securities in Tokyo.
“Tokyo stocks are rising quite fast but we don’t feel the market is overheating,” Yamamoto told AFP.
“Of course, the market will face profit-taking from now, but sentiment is expected to remain brisk.”
On Thursday, the Japanese government declared a month-long coronavirus state of emergency in the greater Tokyo area as the capital reported another record surge in daily infections.
“But the market is calmly accepting the announcement,” Yamamoto said, adding that investors are closely watching the effectiveness of the measure.
The dollar fetched ¥103.87 (RM4.03) in Asian afternoon trade against ¥103.81 in New York late yesterday.
In Tokyo, tyre company Bridgestone rallied 5.97 per cent to ¥3,637 after French-Swiss construction giant LafargeHolcim said it will snatch up roofing manufacturer Firestone Building Products, a unit of Bridgestone Americas, for US$3.4 billion.
Uniqlo casual wear operator Fast Retailing jumped 3.82 per cent to ¥91,730, Sony rallied 2.63 per cent to ¥10,715 and Nintendo gained 0.95 per cent to ¥65,370.
Automakers were mixed. Toyota rose 1.54 per cent to ¥7,939 with Honda up 0.92 per cent at ¥2,933.5, but Nissan dropped 1.60 per cent to ¥544.1.
Japan’s household spending in November was up 1.1 percent on-year, the second consecutive monthly rise, which did not prompt major market reaction.
Tokyo financial markets will be closed on Monday for a national holiday. ― AFP