Tokyo shares open higher following Wall Street gains

Tokyo, Aug 22 (AFP/APP):Tokyo stocks opened higher Thursday, chasing gains made on Wall Street as market players focused on key US data as well as the US Federal Reserve.

The benchmark Nikkei 225 index added 0.41 percent or 85.45 points to 20,704.02 in early trade, while the broader Topix index rose 0.27 percent or 4.00 points to 1,501.51.
Investors returned to buying after major foreign markets chalked up solid gains overnight, with the Dow finishing up 0.9 percent at 26,202.73.

But many players may refrain from taking an overly bullish position as they await key US data expected later in the day, including initial jobless claims and PMI data.

Also attracting the global market’s attention was a speech on Friday by Fed chair Jerome Powell, who is facing pressure from President Donald Trump to cut the policy rate.
Powell is scheduled to address the annual central bankers’ symposium in the western US city of Jackson Hole.

“The Japanese market is expected to rebound on the back of the gains made in the US and European markets,” Okasan Online Securities said in a note to clients.

“But, ahead of the releases of major economic indicators and the speech by the Fed chair, the Tokyo market’s gain should plateau and move within a narrow range,” it added.
The dollar stood at 106.56 yen, nearly flat from 106.63 yen from New York.

Among major shares, robot maker Fanuc jumped 1.23 percent to 18,540 yen and major semiconductor test equipment supplier Advantest added 2.19 percent to 4,200 yen.

Construction equipment producer Komatsu added 1.16 percent to 2,272 yen.
Nintendo jumped 0.75 percent to 40,530 yen, while Sony dropped 0.95 percent to 5,938.

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