Tokyo stocks close up on hope for new govt

by AFP / pic by BLOOMBERG

TOKYO • Tokyo stocks closed higher for a third straight session yesterday on expectations that Japan’s next government — to be formed later this week — will not make major policy shifts.

The benchmark Nikkei 225 index gained 0.65%, or 152.81 points, at 23,559.30, while the broader Topix Index was up 0.88%, or 14.46 points, at 1,651.10.

Dealers watched the ruling party’s leadership election yesterday, effectively deciding Japan’s next prime minister.

After the markets closed chief Cabinet secretary Yoshihide Suga was named to succeed Shinzo Abe, who announced he will resign due to health problems.

“Investors are hoping that Suga will continue taking stimulus measures,” Toshikazu Horiuchi, a broker at IwaiCosmo Securities Co Ltd, told AFP.

Dealers also welcomed plans to add Tokyo to a Japanese government domestic tourism campaign intended to boost an economy hit hard by Covid-19.

“Expectations for expansion in domestic economic activities are growing after Tokyo was added to the government’s ‘Go To’ travel campaign,” Yoshihiro Ito, chief strategist at Okasan Online Securities Co Ltd, said in a commentary.

The dollar fetched ¥106.06 (RM4.24) in Asian afternoon trade, against ¥106.10 in New York late last Friday.

In Tokyo, SoftBank Group Corp soared 8.95% to ¥6,385 after the telecommunication and investment giant said it was selling British chip designer Arm Ltd to US chip company Nvidia Corp for up to US$40 billion (RM168 billion).

Toyota Motor Corp advanced 1.3% to ¥7,047, and Sony Corp rose 0.56% to ¥8,257, but Uniqlo operator Fast Retailing Co Ltd lost 1.62% to ¥66,090. — AFP