Tokyo Stocks Rally, Takata Extends Rebound

TOKYO, , (UrduPoint / Pakistan Point News - 26th Jan, 2017 ) - Tokyo shares rose Thursday after the Dow topped 20,000 points for the first time on hopes the Trump administration's economic plans will ramp up growth, while airbag maker Takata soared for a second day.

The surge on Wall Street was the latest sign that investors are brushing aside worries about Donald Trump's bent towards protectionism and instead betting that the White House and Republican Congress will usher in tax cuts, spend big on infrastructure and slash red tape.

"The US economy is doing well, corporate earnings are good and it looks like Mr Trump's policies will keep improving the economy," Mitsushige Akino, an executive officer at Ichiyoshi Investment Management, told Bloomberg News.

The Dow, the benchmark US stock index, shot above 20,000 on Wednesday to close at 20,068.51, up 0.8 percent. The S&P 500 and Nasdaq also posted new records. In Tokyo, the benchmark Nikkei index added 1.81 percent, or 344.89 points, to close at 19,402.39.

The broader Topix index of all first-section issues rose 1.54 percent, or 23.43 points, to finish at 1,545.01. This week, Trump pressed on with plans to withdraw the US from the Trans-Pacific Partnership, a vast trade deal encompassing a dozen nations that Japanese Prime Minister Shinzo Abe has backed enthusiastically.

US participation is seen as a key to the agreement and Abe said he would keep trying to convince Trump of its merits. But on Thursday, Abe said he would consider the possibility of Tokyo and Washington hammering out a trade deal alone -- Trump has said he preferred bilateral trade agreements to multi-country accords.

In Tokyo share trading, Takata soared nearly 20 percent, the maximum daily limit, to end at 619 yen. The embattled airbag maker surged 18 percent Wednesday as it denied reports it was considering a potentially lengthy court-mediated bankruptcy restructuring.

Toshiba rose 1.61 percent to 258.5 Yen after news reports that the troubled conglomerate may sell off nearly 20 percent of its chip business. The firm is widely expected to decide on the possible spin-off at a board meeting Friday.

US microchip maker Micron Technology may invest in the operation as well as copier maker Canon and investment funds, Japan's Nikkei business daily said. Toyota added 0.86 percent to end the day at 6,764 yen, Nissan rose 1.05 percent to 1,146 yen, and Sony jumped 2.17 percent to 3,520 yen. The Dollar was at 113.52 yen compared with 113.24 yen in New York.