Tokyo shares up strongly on US gains

TOKYO – Tokyo’s main Nikkei index rose strongly Monday, as investors cheered positive US jobs data and the dollar’s strength.
The headline Nikkei index rose 2.03 percent or 782.83 points to 39,418.45 yen in early trade, while the broader Topix index added 1.62 percent or 43.57 points to 2,737.64 yen.
“Monday’s trading in Asia is kicking off on a high, with investors buzzing after a blowout US jobs report that caught even the most bullish forecasters off guard,” said independent analyst Stephen Innes.
The US jobs data eased concerns about a slowing labour market and prompted analysts to lower their expectations about the speed and scale of the Federal Reserve’s future rate hikes.
“The much-debated 50-basis-point Fed rate cut for next month is officially off the table,” Innes said.
“Instead, traders are locking in bets for two smaller quarter-point cuts over the next few meetings.
“That shift sent the US dollar flying higher, long-term Treasury yields spiking, and any lingering recession fears fading fast as US economic resilience took center stage,” he said.
The dollar stood at 148.52 yen, slightly off from 148.64 yen seen Friday in New York, but sharply higher from 146.30 yen seen Friday in Tokyo.
Among major shares, Toyota rose 2.65 percent to 2,654.5 yen. Uniqlo-operator Fast Retailing jumped 3.03 percent to 50,700 yen.
Semiconductor firms also gained. Tokyo Electron added 1.46 percent to 25,725 yen. Advantest surged 3.20 percent to 7,197 yen.
Nintendo shares rose 2.79 percent to 7,959 yen after the vice-chair of Saudi Arabia’s sovereign wealth fund told Kyodo News that the kingdom is considering raising its stakes in the Super Mario maker and other Japanese gaming companies.