TOKYO, Jan 7 ― Tokyo stocks opened higher today, rebounding from sharp falls in the previous session on speculation about a US monetary policy shift.
The benchmark Nikkei 225 index rose 0.76 per cent or 216.76 points to 28,704.63 in early trade, while the broader Topix index advanced 0.57 per cent or 11.36 points to 2,008.37.
The dollar stood at ¥115.87 (RM4.20), nearly flat from 115.89 on Thursday in New York.
The gains came after the Nikkei dropped more than 2.8 per cent yesterday when investors reacted with distress to suggestions that the Fed might start tightening monetary policy soon, although the prospect has been widely discussed among investors for some time.
The Tokyo market was expected to see mixed trade, taking “one step forward and one step back,” Okasan Online Securities said in a note.
“Investors are likely to return to buying after selling of US technology shares stopped,” the brokerage said.
“But it is possible the markets will continue to see volatile movement, especially the US market as we approach” the US Fed meeting later this month, Okasan said.
“Once the fog of uncertainty becomes clearer, the market should regain its calm,” it said.
Analysts still generally projected optimism for the year despite continued risks.
“Most of Wall Street has an upbeat outlook for 2022,” Edward Moya of OANDA said in a note, “but the risks of a Fed policy mistake, US geopolitical tensions with both Russia and China, and inflationary pressures, pose serious risks to the stock market later in the year.”
Shortly before the opening bell, the Japanese government said the nation's household spending in November dropped 1.3 per cent from a year ago.
Among major shares, Sony Group rebounded 1.83 per cent to ¥14,720. Nintendo rose 1.02 per cent to ¥53,600.
SoftBank Group jumped 3.93 per cent to ¥5,583.
Toyota advanced 1.53 per cent to ¥2,319.5. Air carrier ANA Holdings rose 1.25 per cent to ¥2,384.5. Construction equipment maker Komatsu firmed 0.35 per cent to ¥2,904.
Heavily weighted Fast Retailing, operator of Uniqlo fashion chain, added 0.43 percent to 61,140 yen.
Advantest, which makes testing tools for semiconductors, rose 1.11 per cent to ¥10,900. Chipmaker Murata Manufacturing added 0.35 per cent to ¥9,280. ― AFP
