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Tokyo’s Nikkei jumps more than 1.8% after Wall St rally
TOKYO, Nov 8, 2018 (BSS/AFP) – Tokyo’s benchmark Nikkei index gained more
than 1.8 percent on Thursday with market sentiment buoyed by a rally in Wall
Street shares after the US midterm elections produced no major surprises.
The Nikkei 225 index rose 1.82 percent or 401.12 points to 22,486.92,
while the broader Topix index was up 1.74 percent or 28.82 points at
1,681.25.
“Buying sentiment spread as the market took a positive lead from Wall
Street, erasing initial concerns about the US elections,” said Toshikazu
Horiuchi, a broker at IwaiCosmo Securities.
The benchmark Dow Jones Industrial Average jumped more than 2 percent as
markets breathed a sigh of relief with the uncertainty of the vote now behind
them.
On Wednesday, the Japanese bourse closed lower as investors were still
digesting the US vote result — a split Congress that analysts say is likely
to halt any major advances in President Donald Trump’s economic agenda.
“Following the vote, the market shifted its focus to the FOMC (Federal
Open Market Committee),” Horiuchi told AFP.
The Federal Reserve will end its two-day policy meeting later in the day,
with central bankers widely expected to hold their fire but likely to signal
a December rate hike.
“And the market is also refocusing on the prospect of a US-China trade
war,” he added.
The dollar changed hands at 113.68 yen in Asian afternoon trade, against
113.53 yen in New York.
In Tokyo, Toshiba soared 12.68 percent to 3,775 yen as investors welcomed
its plan to buy back its shares. Toshiba also said it revised downward its
full-year forecast and will slash 7,000 jobs.
Toyota gained another 0.70 percent to 6,686 yen, rising for the third
straight session after it posted record first-half sales and upgraded its
annual forecasts.
Fujifilm jumped 2.17 percent to 4,877 yen after it reported a better-than-
expected operating profit in the second quarter to September.
BSS/AFP/HR/1400