Fri 10 Apr 2020 – 08:43
[TOKYO] On Friday, the Nikkei key index opened higher, extending rallies on Wall Street after the US Federal Reserve unveiled a new massive stimulus package.
The Nikkei 225 index rose 0.5%, or 96.92 points, to 19,442.69 points, while the broader Topix index slipped 0.2%, or 3.22 points, to 1 413.76.
“Japanese stocks are on the rise, spurred on by US stock rallies … after the Fed announced emergency stimulus measures,” said Toshiyuki Kanayama, senior market analyst at Monex, in a note.
“The objective is to know if the Nikkei index will be able to recover the level of 19,500” considered to be psychologically important, he added.
The dollar reached 108.51 yen at the start of Asian trade, against 198.47 yen in New York.
Mutsumi Kagawa, chief global strategist at Rakuten Securities, said the market remains in a “tug of war” state between those who are pessimistic (about the virus pandemic) and those who are optimistic, … who think they don’t, want to miss a rare opportunity to buy stocks at cheap prices.
In Tokyo, casual wear operator Uniqlo Fast Retailing rose 5.49% to 49,530 despite its announcement to lower its profit forecast for the year to August.
Other significant shares were mixed, with Toyota slipping 0.8% to 6,630 yen and chipmaking equipment maker Tokyo Electron down 0.3% to 22,875 yen, while parts maker Shin -Etsu Chemical rose 2% to 11,475 yen.
On Wall Street, the Dow Jones finished up 1.2% to 23,719.37.