Tokyo stocks close higher on US stimulus

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Japan's household spending dipped 10.2 percent in September on-year, according to the internal affairs ministry data released before the opening bell.
Japan's household spending dipped 10.2 percent in September on-year, according to the internal affairs ministry data released before the opening bell.
Photography by ZhangXun
  • Tokyo stocks closed higher Thursday as investors mulled the effects of a $2 trillion US spending plan on the global market.
  • The benchmark Nikkei 225 index rose 0.72% to end at 29 388.87, while the broader Topix index advanced 0.19%.
  • On Wall Street, the blue-chip Dow ended lower, but both the S&P 500 and Nasdaq Composite advanced.


Tokyo stocks closed higher Thursday as investors mulled the effects of a $2 trillion US spending plan on the global market and kept an eye on US economic data.

The benchmark Nikkei 225 index rose 0.72% to end at 29 388.87, while the broader Topix index advanced 0.19% to 1 957.64.

"The Nikkei index opened higher following gains on tech shares in the US... but a wait-and-see attitude grew ahead of the announcement of US economic data," said senior strategist Yoshihiro Ito of Okasan Securities.

On Wall Street, the blue-chip Dow ended lower, but both the S&P 500 and Nasdaq Composite advanced as President Joe Biden unveiled a $2 trillion infrastructure spending plan.

Traders were keeping an eye on major US data including the service sector index by the Institute for Supply Management, unemployment figures and non-farm payrolls.

They also weighed the Bank of Japan's Tankan business survey, which showed optimism among major manufacturers for the first time since the Covid-19 pandemic began.

The quarterly poll of around 10 000 companies showed a reading of 5 among big manufacturers. A positive figure means more manufacturers see business conditions as favourable than those that consider them unfavourable.

In Tokyo trading, Toshiba jumped 4.54% to 3 910 yen after reports that two US data-storage firms are separately exploring a potential deal for Japanese semiconductor company Kioxia, in which Toshiba holds a stake of around 40%.

SoftBank Group climbed 0.65% to 9 391 yen while Sony rose 0.47% to 11 650 yen.

Automakers were lower with Toyota falling 2.24% to 8 423 yen, Honda dipping 0.57% to 3 300 yen and Nissan dropping 4.09% to 590.7 yen.

The dollar fetched 110.76 yen in Asian trade, unchanged from the level in New York late Wednesday.

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