Tokyo stocks jump in morning on tech buying after Wall St. gains
TOKYO (Kyodo) — Tokyo stocks rose sharply in the morning led by technology shares tracking overnight Wall Street gains, as stronger-than-expected U.S. economic data bolstered hopes the world’s largest economy can avoid a recession.
The 225-issue Nikkei Stock Average rose 780.25 points, or 2.10 percent, from Thursday to 37,935.58. The broader Topix index was up 39.74 points, or 1.52 percent, at 2,656.61.
The U.S. dollar mostly stayed in the lower to mid-142 yen range in Tokyo, as investors awaited the outcome of the Bank of Japan’s policy meeting. The currency market reacted little immediately after the central bank left unchanged its policy rate as expected.
At noon, the dollar fetched 142.46-49 yen compared with 142.57-67 yen in New York and 142.50-52 yen in Tokyo at 5 p.m. Thursday.
The euro was quoted at $1.1161-1162 and 159.00-05 yen against $1.1156-1166 and 159.07-17 yen in New York and $1.1145-1147 and 158.82-86 yen in Tokyo late Thursday afternoon.
Stocks were boosted by hopes the U.S. economy can achieve a soft landing, after fewer-than-expected jobless claims and solid manufacturing data for September came a day after the Federal Reserve sharply cut interest rates.
The market was also supported by expectations that the BOJ would refrain from further raising interest rates, while focusing on a press conference BOJ Governor Kazuo Ueda is due to give later in the day, brokers said.