The benchmark Nikkei 225 index rose 0.85 per cent, or 223.59 points, to 26,397.57, while the broader Topix index added 0.29 per cent, or 5.30 points, to 1,860.45. — Reuters pic
Thursday, 29 Sep 2022 9:28 AM MYT
TOKYO, Sept 29 ― Tokyo stocks opened higher today extending gains on Wall Street, where investors were reassured by the Bank of England’s intervention that helped push bond yields lower.
The benchmark Nikkei 225 index rose 0.85 per cent, or 223.59 points, to 26,397.57, while the broader Topix index added 0.29 per cent, or 5.30 points, to 1,860.45.
The dollar fetched ¥144.43 (RM4.61), against ¥144.11 in New York yesterday.
Following a historic slump in the pound, the BoE announced it was temporarily buying up long-dated UK government bonds “to restore orderly market conditions”.
In both Britain and the United States the move pressured Treasury bond yields, which had risen sharply as central banks hiked interest rates.
“The impact of the BoE’s announcement was to see the 30-year gilts yield fall from an earlier high of 5.12 per cent to a low of 3.92 per cent, a quite extraordinarily one-day move,” said Ray Attrill, a National Australia Bank analyst.
This in turn spurred a reversal in government bond yields globally, prompting a reaction from Tokyo investors as well.
“The US market rallied significantly following the lowering of bond yields”, which was “expected to push stocks in Japan higher as the session opens”, said Toshiyuki Kanayama, senior market analyst of Monex.
Among major shares in Tokyo, SoftBank Group rose 1.45 per cent to ¥5,010, Sony Group was up 0.80 per cent to ¥9,648 and Toyota inched up 0.17 per cent to ¥1,957.
Uniqlo operator Fast Retailing jumped 3.24 per cent to ¥80,400. ― AFP