Tokyo Shares Open Higher After Wall Street Gains

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Tokyo shares opened higher Monday following gains on Wall Street, where investors were hopeful the Fed may ease the pace of recent rate hikes after US economic data showed slowing inflation.

The benchmark Nikkei 225 index gained 0.55 percent, or 156.67 points, to 28,703.65 in early trade, while the broader Topix index rose 0.22 percent, or 4.43 points, to 1,977.61.

The dollar stood at 133.16 yen, compared with the 133.50 yen seen Friday in New York.

Shortly before the opening bell, the government announced that Japan’s economy grew 0.5 percent in the April-June quarter, marking three quarters of low or near-flat expansion.

Buying dominated in morning trade as global investors continued to digest the US inflation data, which some have taken as a sign the pace of rate hikes by the US Federal Reserve will slow.

“A growing narrative of a soft landing has taken hold, gaining traction after some easing in price indicators with some interpreting that as allowing the Fed to ease up on the pace of hikes,” Tapas Strickland of National Australia Bank said.

Market players were also awaiting the release of US retail sales data Wednesday as well as earnings reports from major US firms such as Walmart, he added.

The Tokyo market remained upbeat after a surge last week, Okasan Online Securities said, while investors are taking summer holidays, discouraging investors from selling down shares.

A lack of fresh news in Japan also leaves the Tokyo market heavily influenced by Wall Street, the brokerage added.

Among major shares, Sony Group added 0.65 percent to 11,530 yen and SoftBank Group rose 3.62 percent to 5,813 yen.

Toyota fell 0.54 percent to 2,123.5 yen, while Nissan lost 0.73 percent to 534 yen.

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