TOKYO, May 21 — Tokyo stocks opened higher today following gains on Wall Street, as traders were buoyed by the prospect of a state of emergency being lifted in western Japan later in the day.
The benchmark Nikkei 225 index was up 0.53 per cent or 109.39 points at 20,704.54 in early trade, while the broader Topix index edged up 0.27 per cent or 3.98 points to 1,498.67.
“Japanese shares are seen testing the upside supported by rallies in US stocks, while hopes are growing as the government is expected to lift the state of emergency for Osaka, Kyoto and Hyogo later today,” said Okasan Online Securities.
Japan last week lifted a state of emergency imposed due to the coronavirus for the majority of the country but kept it in place for top cities Tokyo and Osaka.
Later today, Prime Minister Shinzo Abe’s government is expected to lift the state of emergency for Osaka and neighbouring regions Kyoto and Hyogo.
While there was a general feeling in the global market the worst of the pandemic has passed, rising China-US tensions continue to cast a shadow over trading floors, along with growing signs of a looming economic catastrophe.
According to data released before the opening bell, Japan booked a trade deficit of ¥930.4 billion (RM37.6 billion) in April, with exports dropping 21.9 per cent and imports down 7.2 per cent year-on-year.
The dollar traded at ¥107.66 in Asian trade, against ¥107.55 in New York late today.
In Tokyo, blue-chip exporters were generally stronger, with Sony trading up 1.14 per cent at ¥6,824, Panasonic climbing 1.25 per cent at ¥892.6, and parts maker Murata Manufacturing rising 1.09 per cent at ¥6,130.
On Wall Street, the Dow ended up 1.5 per cent at 24,575.90. — AFP