Tokyo stocks open higher after US gains

Tokyo stocks open higher after US gains

Japan halted all new non-resident foreign arrivals from overseas from Monday

An employee of a securities company cleans an electronic board displaying share prices of the Tokyo Stock Exchange in Tokyo on December on December 29, 2020. Credit: AFP Photo

Tokyo stocks opened higher on Tuesday after US shares finished at all-time highs as markets cheered Washington's enactment of its latest economic relief package.

The benchmark Nikkei 225 index rose 0.31 per cent, or 82.35 points, to 26,936.38 at the open, while the broader Topix index advanced 0.32 per cent, or 5.79 points, to 1,793.83.

All three major US indices ended at all-time highs, with the Dow Jones Industrial Average up 0.7 per cent at 30,403.97.

The broad-based S&P 500 gained 0.9 per cent to 3,735.36, while the tech-rich Nasdaq Composite Index advanced 0.7 per cent to 12,899.42.

The jump came after US President Donald Trump signed a $900-billion (735-billion-euro) stimulus bill late Sunday, averting a government shutdown, providing additional payments to unemployed workers and extending an eviction moratorium by a month.

"Japanese stocks are likely to continue climbing on gains of US shares," senior market strategist Yoshihiro Ito of Okasan Online Securities said in a commentary.

"In the US, although the virus continues to spread and there's a concern over the new strains, there are hopes for economic recovery thanks to coronavirus vaccines," he said.

Japan halted all new non-resident foreign arrivals from overseas from Monday until late January after finding several cases of the new variant, which experts fear is more contagious.

The number of virus cases continues to soar in Japan and Prime Minister Yoshihide Suga urged people to avoid gatherings, saying "the virus has no holidays".

The dollar fetched 103.71 yen in early Asian trade against 103.76 on Monday in New York.

In Tokyo share trading, SoftBank Group rose 0.98 per cent to 7,782 yen, while Uniqlo casual wear operator Fast Retailing grew 0.34 per cent to 87,200 yen.

Sony jumped 1.52 per cent to 10,335 yen and Panasonic gained 1.83 per cent to 1,195.5 yen.

Toyota climbed 1.25 per cent to 7,997 yen.