Tokyo Shares Rise On Solid Economic Data

Tokyo, (UrduPoint / Pakistan Point News - 13th Aug, 2020 ) :Tokyo shares opened higher Thursday after overnight surges on major markets, including Wall Street, triggered by increasing hopes for economic recovery.

The benchmark Nikkei 225 index jumped 276.65 points or 1.21 percent to 23,120.61 in early trade, while the broader Topix index rose 13.56 points or 0.84 percent to 1,619.09.

The strong open in Tokyo came after global shares racked up healthy gains as investors regained their optimism about an economic recovery.

The Nasdaq added 2.1 percent while the Dow rose 1.1 percent.

A string of recent indicators, including solid US jobs data, "show macroeconomic data are gaining momentum toward recovery", Okasan Online Securities said in a note.

"The Tokyo market is also benefiting from a weaker yen. After the strong open, shares are expected to stay strong," it said.

The Dollar stood at 106.76 Yen, essentially keeping its ground since New York, where it bought 106.

86 yen.

"Investors are returning to major shares that had been taking a breather, and this is driving up the entire market," Okasan said.

Investors are also welcoming news about progress on the development of vaccines for the coronavirus, the brokerage said.

Russian President Vladimir Putin declared that his nation had developed the world's first safe coronavirus vaccine, though the claim has met with scepticism in the international scientific community.

US President Donald Trump has also announced a $1.5 billion contract with US biotech company Moderna for 100 million doses of an eventual coronavirus vaccine, the sixth such deal reached since May.

Among major shares in Tokyo, Toyota rose 1.41 percent to 7,346 points, while Uniqlo operator Fast Retailing added 2.33 percent to 61,510 yen. Sony jumped 2.80 percent to 8,699.

Construction equipment maker Komatsu added 1.01 percent to 2,299.5 yen, while Mitsubishi UFJ Financial Group rose 0.52 percent to 441.7.