Home ›› 17 Jun 2022 ›› Stock
Tokyo stocks closed higher Thursday as investors cheered a major US rate hike that boosted Wall Street.
The benchmark Nikkei 225 index rose 0.40 per cent, or 105.04 points, to end at 26,431.20, while the broader Topix index advanced 0.64 per cent, or 11.88 points, to 1,867.81.
The dollar stood at 134.22 yen, up from 133.69 yen Wednesday in New York.
Global markets climbed after the Fed raised its benchmark rate by 0.75 percentage points -- the largest increase in nearly three decades -- in a drive to tame inflation.
The Dow gained 1.0 per cent and the tech-rich Nasdaq index added 2.5 per cent.
“Considering recent losses on Wall Street, the strength of the rebound (in US shares) appears less than fully satisfactory, but the fact that US shares stopped falling should let investors breathe a sigh of relief,” Okasan Online Securities said.
Resona Bank said that “worries over excessive monetary tightening eased” after the Fed decision.
Now focus is shifting to other central bank policies, including a Bank of England meeting later Thursday and the Bank of Japan’s two-day gathering that concludes on Friday.
The BoE is expected to raise its key interest rate for a fifth straight time to cool runaway inflation that is fuelling a cost-of-living crisis in Britain.
Analysts predict the BoJ will keep its ultra-loose policy but may revise measures to control yields on government bonds as it faces pressure to address the impact of a weaker yen. Toyota rallied 2.88 per cent to 2,140 yen, Sony Group added 1.53 per cent to 11,285 yen, and Nintendo gained 0.48 per cent to 56,480 yen.
But Advantest, a major producer of tools to build semiconductors, lost 1.94 per cent to 7,580 yen, while chip-making equipment manufacturer Tokyo Electron closed down 0.80 per cent at 50,590 yen.
