Tokyo stocks close higher on gains in US tech shares

·2-min read

Tokyo stocks closed higher on Thursday as investors took heart from gains in US tech shares after the Fed decided against any major changes to its monetary policy.

The benchmark Nikkei 225 index rose 0.73 percent, or 200.76 points, to 27,782.42, while the broader Topix index gained 0.41 percent, or 7.78 points, to 1,927.43.

"Rallies in US tech shares are providing a positive push for the Tokyo market but an expansion in virus cases in Japan could offset the positive mood, leading to lack of a clear direction in trade," Mizuho Securities said.

The Nasdaq rallied on Wednesday after the US Federal Reserve made no major changes to its monetary policy.

"Although shares rose today, market sentiment in Tokyo is not so strong," said Yoshihiro Okumura of Chibagin Asset Management.

"Profit-taking can easily emerge on each sizable gain," Okumura told AFP. "Trading is expected to be range-bound for now."

The dollar fetched 109.69 yen in Asian afternoon trade, against 109.90 yen in New York late Wednesday.

In Tokyo, tech shares were among winners. Chip-testing equipment maker Advantest soared 7.33 percent to 9,810 yen with chip-making equipment manufacturer Tokyo Electron up 2.50 percent at 45,490 yen.

Nissan climbed 5.76 percent to 627.9 yen after the automaker upgraded its annual outlook, projecting a return to the black.

"Investors are targeting shares of companies showing favourable results," Okumura said.

SoftBank Group jumped 4.07 percent to 7,020 yen following reports that the firm was selling its stake in ride-hailing company Uber.

Panasonic rose 1.80 percent to 1,350 yen. After the closing bell, the company said it returned to the black in the first quarter with strong sales, but left its annual forecast unchanged.

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