Tokyo stocks open higher following US gains

Investors await a critical U.S. consumer price release on Tuesday, followed by Thursday’s retail sales report

Kazuhiro NOGI

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ADDS Analyst Comments, Stock Prices, Exchange Rates

Shares in Tokyo opened higher on Tuesday, trailing gains on Wall Street, as investors priced in expectations of further interest rate hikes to tame inflation.

The benchmark Nikkei 225 rose 0.14%, or 40.60 points, to 28,582.71 in early trading, while the broader Topix index rose 0.15%, or 2, 96 points, at 1,983.18.

“Investors felt encouraged to buy Japanese stocks by rallies in the US market, but a wait-and-see attitude may emerge in subsequent trading ahead of the release of the US consumer price index,” Mizuho Securities said in a statement. a comment.

Wall Street stocks ended with solid gains, continuing a rally that ended a three-week losing streak.

Investors are eagerly awaiting a critical Tuesday release of U.S. consumer prices, followed by Thursday’s retail sales report – the last important data ahead of the Federal Reserve’s interest rate move next week.

While inflation is expected to have eased in August, largely due to falling gasoline prices, it seems unlikely that it will be enough to avert a third consecutive three-quarter point rise from the fed.

However, National Australia Bank analyst Tapas Strickland believes that “there appears to be a growing consensus that inflation has peaked in the United States.”

The dollar hit 142.62 yen in early Asian trading, versus 142.82 yen in New York on Monday night.

Among individual stocks, gaming giant Nintendo climbed 5.11% to 61,970 yen after it said domestic sales of its Splatoon 3 game for Nintendo Switch consoles topped 3.45 million in the next three days. its launch on September 9.

This marks the highest level of domestic sales for any Switch software within three days of launch, Nintendo said.

Sony Group barely budged after saying its music business had completely pulled out of Russia, trading up just 0.04% at 10,765 yen around 40 minutes after the opening bell.

“As the war continues to have a devastating humanitarian impact in Ukraine and sanctions against Russia continue to increase, we can no longer maintain a presence in Russia, effective immediately,” the company said in a statement. at AFP.

Automaker Nissan lost 1.34% to 545.5 yen after announcing late Monday that it would extend the shutdown of production at its plant in St. Petersburg in Russia by three months.

The decision means production will be suspended until the end of December, with the company citing ongoing logistical difficulties with the move.

Airlines continued to rally following reports that the Japanese government may significantly ease Covid-related border controls, with ANA Holdings trading up 2.83% at 2,778.5 and Japan Airlines up 2.04% to 2,653 yen.

Toyota was down 0.82% at 2,053 yen and Honda was down 2.02% at 3,639 yen, after a brokerage firm lowered its estimate of the shares’ performance.

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