ADD Analyst Comments, Stock Prices, Forex Rates
Tokyo stocks opened higher on Wednesday as investors were defied by a strong recovery on Wall Street after falling last week on inflation concerns.
The benchmark Nikkei 225 index opened 0.67 percent, or 175.54 points, to 26,421.85, while the broader Topix index was up 0.70 percent, or 13.07 points, to 1,869.27.
Japanese stocks are starting to rise on US stock gains, “but a wait-and-see attitude is likely to prevail before Congress before Jericho Powell said,” Monex senior market analyst Toshiyuki Kanayama later said.
Wall Street stocks rallied overnight, making the holiday-shortened week positive as investors debated whether the rally could mean a return to the market.
After significant losses last week, the Dow Jones Industrial Average closed down 2.2 percent at 30,530.25.
The broad S&P 500 rose 2.5 percent and the tech-rich Nasdaq Composite Index rose 2.5 percent.
Analysts described the market as poised for a rebound after huge losses throughout most of 2022 that caused shares to “sell off” for a short time.
The dollar hit 136.30 yen in early Asian trade, compared with 136.64 yen in New York City late Tuesday when it hit just a fresh 24-year low against the dollar.
The Japanese currency fell to the 136 level during trading in London on anticipation of wider interest rate differentials between the two countries, although the dollar eased against other key peers ahead of the Fed President’s testimony.
The Bank of Japan has defied the trend of global competitors with its extremely easy monetary policy, arguing that current inflationary tendencies are only temporary.
Among the top stocks in Tokyo, Toyota rose 1.61 percent to 2,173 yen, Panasonic rose 0.99 percent to 1,122.5 yen, industrial robot maker Fanuc rose 0.91 percent to 21,125 yen and construction machinery maker Komatsu rose 0.803 percent 0.803 percent.
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