TOKYO, (APP/AFP): Tokyo shares rose in early trading on
Tuesday as investor sentiment brightened after Wall Street rallied on stronger oil prices.
Wall Street equities enjoyed healthy gains Monday, closing sharply
higher after US oil prices surged more than six percent.
The gains helped spark especially large increases in petroleum and
commodity-linked companies and technology shares.
In response, Japanese energy explorer Inpex advanced 3.5 percent to
854 yen in early morning deals, while JX Holdings was up more than two percent at 455.1 yen.
Tokyo’s benchmark Nikkei 225 index rose 1.32 percent, or 213.29 points to 16.324.34 about 35 minutes after the opening bell, extending the previous day’s gains.
The broader Topix index of all first-section shares gained 1.03 percent, or 13.37 points, to 1,313.37.
“Higher oil prices imply the economy is sound, which would open the
possibility for us (to) see investor sentiment turn for the better,” Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told Bloomberg News.
But Mace Blicksilver, the US-based director of Marblehead Asset Management, said he was “cautious” about the prospect for further gains.
“I just don’t think everything that was a concern two weeks ago has gone away,” he said.
Key worries include doubts about the ability of oil prices to rise further and the likelihood that low interest rates will pressure bank earnings.
In US trading on Monday, the Dow closed 1.40 percent higher, while the S&P 500 jumped 1.45 percent and the Nasdaq climbed 1.47 percent.
In forex markets, the dollar dropped to 112.81 yen from 112.91 yen Monday in New York.
The euro edged lower to $1.1027 and 124.42 yen from $1.1029 and 124.52 yen in the US.