TOKYO, Sept 27 — Tokyo shares opened higher Monday with Japan expected to lift a coronavirus state of emergency in many areas and the ruling party preparing to choose a new leader.
The benchmark Nikkei 225 index rose 0.49 per cent, or 148.38 points, to 30,397.19 while the broader Topix index advanced 0.67 per cent, or 14.04 points, to 2,104.79.
The dollar stood at 110.73 yen, flat from Friday in New York.
The gains came ahead of outgoing Japanese Prime Minister Yoshihide Suga’s expected announcement later Monday that a pandemic state of emergency will end later this week. The restrictions currently cover Tokyo, Osaka and other economically key regions.
“Concerns remain for future waves of infections, but the reopening of the economy is a... (welcome) move for the Japanese economy and markets,” Okasan Online Securities said in a commentary.
Investors are also hopeful that the new leader of the Liberal Democratic Party, who will replace Suga after a Wednesday vote, will offer fresh stimulus to kickstart the economy, analysts said.
Exactly who will win the LDP leadership race remains uncertain, “but whoever wins, there are high hopes for fiscal spending, which should be positive for Japanese shares,” Okasan said.
Dip-buying also lifted the overall market, it added.
Global investors are shifting their focus to political battles in Washington, with the financial crisis at Chinese property giant Evergrande contained for now.
“We suspect US fiscal policy matters — including the need for Congress to pass a stop-gap funding measure no later than Thursday to prevent a government shutdown — will be stealing the limelight from the Evergrande saga this week,” Ray Attrill of National Australia Bank said in a note.
Among major shares in Tokyo, Mitsubishi UFJ Financial Group added 0.97 per cent to 674.8 yen.
Toyota surged 2.08 per cent to 10,310 yen. SoftBank Group rose 1.42 per cent to 6,721 yen.
Uniqlo-operator Fast Retailing rose 1.13 per cent to 77,970 yen. — AFP
