TOKYO: Tokyo stocks rose Monday morning as investor sentiment was boosted by gains in U.S. equities before the weekend on speculation U.S. interest rates will stay low for the time being, as well as hopes for an agreement in the 12-party Trans-Pacific Partnership trade negotiations.
The 225-issue Nikkei Stock Average gained 216.49 points, or 1.22 percent, from Friday to end the morning at 17,941.62. The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 13.93 points, or 0.96 percent, at 1,458.85.
Gainers were led by iron and steel, mining and wholesale trade issues.
Stocks opened higher, with sentiment aided by firm gains in New York stocks on Friday after September U.S. jobs data came in much weaker than expected, raising speculation the Federal Reserve may delay raising U.S. interest rates for the rest of the year.
Fewer jobs were added to nonfarm payrolls than forecasted, wage growth was lackluster and previous months’ figures were downgraded.
“U.S. stocks first plunged but then rose again amid expectations borrowing costs will stay lower for longer,” said Maki Sawada of Nomura Securities Co.’s investment research department.
Investor sentiment was boosted further by reports the TPP trade talks are nearing a broad agreement.
On the First Section, advancing issues outnumbered declining ones 1,293 to 518, while 83 ended the morning unchanged.
A wide range of issues that stand to gain from successful TPP negotiations rose in the morning, including trading houses Mitsubishi, up 88.50 yen, or 4.5 percent, to 2,041.50 yen, and Itochu, up 58.00 yen, or 4.5 percent, to 1,343.50 yen.Mitsubishi Chemical Holdings rose 23.20 yen, or 3.7 percent, to 658.70 yen following reports a subsidiary will raise its U.S. polyester film production capacity by about 40 percent by mid-2017 through investment in added production lines.
