Tokyo stocks opened higher on Wednesday as investors took heart from US rallies and other positive factors while awaiting a Bank of Japan policy decision later this week.
The benchmark Nikkei 225 index was up 1.27 percent, or 341.12 points, at 27,302.80 in early trade, while the broader Topix index advanced 1.29 percent, or 24.55 points to 1,927.34.
“Japanese shares are seen supported by strong rallies in the US market” where the upbeat tone of corporate earnings encouraged risk-on sentiment among investors, Okasan Online Securities said in a note.
However, they will increasingly become cautious ahead of the Bank of Japan’s policy decision on Thursday, it added.
A majority of analysts expect the Japanese central bank to keep its current easing policy but “speculation is lingering over a possible revision”, the brokerage said.
“If the Bank keeps the current policy, that would boost Japanese shares”, encouraging a rebound after worries about a possible change, it added.
The dollar fetched 138.16 yen in early Asian trade, against 138.21 yen in New York late Tuesday.
In Tokyo, ANA Holdings was up 0.97 percent at 2,451 yen after Japan’s two-time Olympic figure skating champion Yuzuru Hanyu, who is sponsored by the airline, said he is retiring from competition.
Its rival Japan Airlines was up 2.05 percent at 2,290 yen, after a report that it will reassign 3,000 workers to low-cost carriers to adapt to a tourism recovery that has emerged sooner than demand for business trips.
Among others, Sony Group rallied 3.01 percent to 11,810 yen, Panasonic was up 1.56 percent at 1,141.5 yen, and Toyota was up 0.80 percent at 2,194.5 yen.