TOKYO, May 30 (ABC): Tokyo stocks opened higher on Monday, extending gains on Wall Street, with investors shifting their focus to global economic indicators due this week.
The benchmark Nikkei 225 index was up 1.21 percent, or 323.48 points, at 27,105.16 in early trade, while the broader Topix index was up 1.01 percent, or 19.03 points, at 1,906.33.
Wall Street stocks rallied Friday following signs of moderating inflation, finishing with weekly gains for the first time in about two months.
US inflation data was no higher than expected, and spending figures no lower, which “proved to be a risk-friendly combination that helped keep the nascent equity rally running in conjunction with some easing in US recession fears,” said Ray Attrill, senior strategist at National Australia Bank, in a client note.
“The coming week will see market activity curtailed by the US Memorial Day holiday on Monday and the two-day UK holiday on Thursday and Friday for the Queen’s platinum jubilee, but it is an important one for data,” with Chinese and US figures coming in, he added.
The dollar fetched 127.26 yen in early Asian trade, against 127.09 yen in New York.
In Tokyo, automakers were among the winners, with Toyota trading up 0.79 percent at 2,100.5 yen, Honda up 0.80 percent at 3,169 yen, and Nissan up 1.47 percent at 497.4 yen.
But shipping firms were sharply lower, with Mitsui OSK Lines dropping 3.67 percent to 3,545 yen and Nippon Yusen trading down 2.74 percent at 11,000 yen.
Among others, Sony Group was up 3.81 percent at 11,860 yen while SoftBank Group was up 0.45 percent at 5,365 yen.