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Tokyo stocks rise in morning on US economic recovery hopes

  • News Desk

    Kyodo News

Tokyo, Japan   /   Fri, April 2, 2021   /   02:12 pm
Tokyo stocks rise in morning on US economic recovery hopes Passersby wearing protective face masks following an outbreak of the coronavirus disease (COVID-19) are reflected on a screen displaying stock prices outside a brokerage in Tokyo, Japan, March 17, 2020. (REUTERS/Issei Kato)

Tokyo stocks gained Friday morning as optimism about a US economic recovery increased following strong US factory data for March and President Joe Biden's $2 trillion plan to rebuild infrastructure.

The 225-issue Nikkei Stock Average rose 331.75 points, or 1.13 percent, from Thursday to 29,720.62. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 11.12 points, or 0.57 percent, at 1,968.76.

Gainers were led by electric appliance, mining, and information and communication issues.

The US dollar stayed in the upper 110 yen range as market players watched closely March US nonfarm payroll data due out later in the day.

At noon, the dollar fetched 110.62-66 yen compared with 110.55-65 yen in New York and 110.68-69 yen in Tokyo at 5 p.m. Thursday.

The euro was quoted at $1.1777-1781 and 130.29-30 yen against $1.1772-1782 and 130.20-30 yen in New York and $1.1740-1742 and 129.94-98 yen in Tokyo late Thursday afternoon.

Shares were higher from the opening, with the benchmark Nikkei briefly rising over 400 points after the Institute for Supply Management said Thursday its index of national factory activity soared to its highest level in about 37 years in March.

Biden's eight-year investment plan to create millions of jobs and rebuild infrastructure as well as bolster the US semiconductor industry added to the momentum to buy shares.

"Hopes grew for normalization of the US economy...with gainers led by semiconductor issues," said Maki Sawada, a strategist at Nomura Securities's Investment Content Department.

Semiconductor equipment maker Tokyo Electron advanced 1,360 yen, or 2.8 percent, to 50,340 yen, and chip testing equipment manufacturer Advantest climbed 340 yen, or 3.4 percent, to 10,420 yen.

Energy-related issues were also among gainers as U.S. crude futures rose overnight despite an agreement by the Organization of the Petroleum Exporting Countries and their allies to start easing production cuts in May.

Oil explorer Inpex rose 10 yen, or 1.3 percent, to 773 yen, and Japan Petroleum Exploration gained 20 yen, or 1.0 percent, to 2,111 yen.

On the First Section, advancing issues outnumbered decliners 1,355 to 725, while 109 ended the morning unchanged.