Blue-chip shares surge as Wall Street stocks bounces back

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High-tech shares gained, but a wide range of shares also suffered losses (AFP)
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  • The benchmark Nikkei 225 index firmed 0.45 percent, or 119.40 points, to 26,547.05.
  • The Nikkei firmed especially in early trade, keeping the momentum from gains of US shares.

Tokyo’s blue-chip shares rose on Monday driven by a rebound in Wall Street stocks, while investors monitored moves by China to gradually lift the lockdown in Shanghai.

The benchmark Nikkei 225 index firmed 0.45 percent, or 119.40 points, to 26,547.05, but the broader Topix index edged down 0.05 percent, or 0.94 points, to 1,863.26.

The dollar stood at 128.98 yen, against 129.19 yen in New York on Friday.

The Nikkei firmed especially in early trade, keeping the momentum from gains of US shares, particularly among high-tech stocks that sent the tech-rich Nasdaq jumping 3.8 percent on Friday.

“There was broad buying particularly of growth shares” in Tokyo, Okasan Online Securities said in a note.

The market trimmed gains after early morning as investors focused on how China would adjust its anti-Covid policy with the gradual lifting of the lockdown in Shanghai.

Investors remain cautious as to whether China will ease its zero-Covid policy, which has added to the disruption of the world’s supply chains.

“While Shanghai provided some positivity for markets, it is not clear when China will pivot to living with Covid,” Tapas Strickland of National Australia Bank wrote in a note.

China on Monday also said its retail sales and factory output slumped to their lowest levels in about two years. The news weighed on the Tokyo market.

“After early buying, investors trimmed losses after seeing disappointing economic indicators from China,” Okasan said.

High-tech shares gained, but a wide range of shares also suffered losses.

Chipmaker Murata Manufacturing rose 1.50 percent to 8,233 yen. Sony Group added 0.72 percent to 11,180 yen. SoftBank Group firmed 1.39 percent to 5,110 yen.

Advantest, which makes tools to build semiconductors, added 0.23 percent to 8,580 yen. Uniqlo operator Fast Retailing rose 1.79 percent to 59,830 yen.

Meanwhile, Toyota fell 0.27 percent to 2,049.5 yen. Nintendo lost 1.59 percent to 56,340 yen.

Mitsubishi UFJ Financial Group edged down 0.26 percent to 728.9 yen.

 

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