Tokyo shares open higher

Tokyo shares opened higher Tuesday as
investors monitored the yen’s relative strength ahead of corporate earnings
season, which starts later this month.

The benchmark Nikkei index rose 0.37 percent, or 121.09 points, to 32,512.35,
while the broader Topix index added 0.38 percent, or 8.49 points, to
2,247.59.

The positive start came as the Tokyo market returned from a national holiday
and attempted to catch up with New York shares, which advanced Monday with
the Nasdaq rising 0.9 percent.

The market is focused on the next meeting of the Federal Reserve to see
whether the US central bank would stop its rate hikes in the future as
speculated.

The market is also monitoring the yen’s relative strength against the dollar,
online brokerage Monex said in a note.

“The Tokyo market is expected to remain cautious with the dollar-yen rate
moving in the 138-yen range,” it said.

The dollar stood at 138.71 yen, nearly flat from 138.70 yen in New York but
lower from 140.74 yen seen in Tokyo a week ago.

The US rate hikes and the Bank of Japan’s easy money programmes have made the
yen-denominated assets less attractive and have driven down the value of the
yen.

The yen’s weakness also often weighs on the Tokyo market as it makes Japanese
exports relatively less competitive overseas.

Still, hopes are high for further improvement of Japanese corporate earnings
as businesses regain normality after the end of strict Covid rules.

Domestic demand is recovering, thanks partly to the return of international
tourists, Rakuten Securities said in a note.

“Our view is that Tokyo shares will continue their upswing unless the US
economy takes a hard-landing and experiences a rapid slowdown,” the brokerage
said.

Among major shares, Toyota rose 1.15 percent to 2,243.5 yen. SoftBank Group
added 0.35 percent to 6,979 yen.

Sony Group rose 1.90 percent to 13,115 yen after X-Box producer Microsoft
said it will keep releasing the popular “Call of Duty” game series on the
PlayStation console.

Semiconductor-related shares also increased.

Tokyo Electron, which makes tools to produce chips, jumped 2.58 percent to
20,710 yen. Advantest, which makes tests for semiconductors, rose 2.46
percent to 22,255 yen.(BSS/AFP)