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Tokyo’s Nikkei index closes up 3.26% on first trading day of 2018
TOKYO, Jan 4, 2018 (BSS/AFP) – Tokyo’s benchmark Nikkei index surged more than three percent to a fresh 26-year high on the first trading day of 2018 as investors caught up with recent rallies on Wall Street.
The bellwether index rose 3.26 percent, or 741.39 points, to close at 23,506.33, the highest since January 1992.
The broader Topix index was up 2.55 percent, or 46.26 points, at 1,863.82.
“The Tokyo market got off to a flying start, taking a positive lead from New York,” said Hikaru Sato, senior technical analyst at Daiwa Securities.
The Tokyo bourse has been riding high, gaining 19.1 percent last year to finish 2017 near a quarter-century high.
During the Tokyo market’s break, US shares leapt to new records, with petroleum-linked shares rallying as oil prices closed at their highest level since December 2014.
All three major US indices jumped to new record highs Wednesday, with the Dow Jones Industrial up 0.4 percent to 24,922.68.
“Investors who adjusted their positions due to potential concerns during the New Year holidays bought back shares as nothing major had happened, such as a North Korean missile launch,” Sato said.
“But concerns over North Korea have yet to end,” Sato added. “The Tokyo market will continue to be subject to external factors this year.”
Global investors perked up after seeing recent robust US economic indicators, including a strong report by the Institute for Supply Management’s purchasing managers, which rated manufacturing activity at its second-highest level in seven years.
“All eyes will continue to stay on US data to be released this week, including the jobs data,” Okasan Online Securities said in a commentary.
“We must monitor the rising trend of oil prices as anti-government demonstrations spread in Iran,” it added.
The dollar stood at 112.54 yen in Tokyo afternoon trade, edging up from 112.52 yen seen in New York Wednesday.
Among major Tokyo shares, Nintendo surged 4.90 percent to 43,210 yen following a news report on a possible launch of Pokemon Go in China.
Toyota added 2.77 percent to 7,413 yen and Uniqlo-operator Fast Retailing jumped 3.40 percent to 46,440 yen.
Sony jumped 3.85 percent to 5,279 yen. Panasonic added 2.51 percent to 1,691 yen.
BSS/AFP/MMA/1249HRS