Tokyo Shares Open Higher

AFP/APP

Tokyo: Tokyo stocks opened higher on Tuesday as risk-on sentiment returned with worries over Middle East tensions receding.

The benchmark Nikkei 225 index rose 0.86 percent, or 323.16 points, to 37,761.77 in early trade, while the broader Topix index added 0.69 percent, or 18.45 points, to 2,680.91.

Global investors bought US tech and semiconductor shares overnight as oil prices dipped, Middle East worries subsided, and as major US firms prepared to release their quarterly earnings reports.

“Tokyo shares are on track to gain after US shares advanced,” brokerage house Monex said.

Investors will gauge whether the Nikkei can sustain momentum through the day to break out of its current range, it added.

Market players are turning their attention to earnings from major US firms to set the onward tone for global stocks.

“With a high bar set for expectations, investors are now paying attention to the upcoming Big Tech earnings reports,” said Stephen Innes of SPI Asset Management.

“Meta, Microsoft, and Alphabet are among the major companies scheduled (this week) to release quarterly reports, and their performance is expected to influence the short-term market dynamics significantly,” he said.

Investors were also monitoring the forex market on speculation that Japanese authorities may step into the market to slow the yen’s fall, after the currency slid to its lowest level in more than 30 years.

The dollar stood at 154.73 yen on Tuesday, compared with 154.84 yen on Monday in New York. 

Toyota added 0.74 percent to 3,543 yen. Uniqlo operator Fast Retailing rose 0.80 percent to 41,780 yen.

Sony Group gave up early gains and fell 0.12 percent to 12,515 yen.