Tokyo Shares Gain After Wall Street Rebound Despite Virus Fears

Tokyo, (UrduPoint / Pakistan Point News - 29th Jan, 2020 ) :Tokyo stocks opened higher on Wednesday after Wall Street rebounded, as investors eyed developments related to the spread of the deadly novel coronavirus.

The benchmark Nikkei 225 index added 0.40 percent or 93.89 points to 23,309.60 points in early trade, while the broader Topix index rose 0.20 percent or 3.35 points to 1,695.63 points.

The gain came after the global market went through a broad sell-off, as coronavirus cases continue to spread in and outside of China.

"Japanese shares are expected to show a technical rally on the rebound of the US markets while the yen's gain hits a lull," Okasan Online Securities chief strategist Yoshihiro Ito said in a commentary.

World markets regained a sense of stability after WHO chief Tedros Adhanom Ghebreyesus in Beijing said he believed that China was capable of controlling and containing the new virus, Ito added.

The virus remains a cause for concern with more infections and deaths likely, but investors are starting to return to the market to look for bargains and promising shares, he said.

The Dollar fetched 109.10 Yen against 109.12 yen in New York late Tuesday.

Among major shares, Honda rose 1.02 percent to 2,878 yen, while Toyota fell 0.19 percent to 7,732 yen.

Sony added 0.32 percent to 7,798 yen. Tyremaker Bridgestone rose 0.52 percent to 3,893 yen.

Shipping shares also enjoyed healthy gains. Top logistics firm Nippon Yusen Kabushiki Kaisha rose 2.99 percent to 1,826 yen. Mitsui OSK Lines added 2.19 percent to 2,755 yen.