TOKYO, August 12(ABC): Tokyo shares jumped more than two percent following gains on Wall Street after US economic data showed inflation may be slowing.
The benchmark Nikkei 225 index gained 2.62 percent, or 727.65 points, to end at 28,546.98, while the broader Topix index rose 2.04 percent, or 39.53 points, to 1,973.18. The dollar fetched 133.17 yen, against 133.05 yen in New York on Thursday.
“Concerns over inflation receded after the US consumer price index was lower than predicted,” Okasan Online Securities said, while the Tokyo market was boosted by higher tech share prices.
Data released Wednesday showed that the US consumer price index eased to 8.5 percent in July from a 40-year high of 9.1 percent the previous month, relieving investors who had feared soaring US inflation could trigger a global recession.
And on Thursday, US government data showed that wholesale prices cooled sharply in July, with a steep 0.5 percent drop compared to June — raising hopes of less aggressive Federal Reserve monetary policy.
In Tokyo, tech-related shares were higher with industrial robot maker Fanuc closing up 5.88 percent at 24,455 yen. Advantest, a major producer of testing kits for semiconductors, climbed 3.94 percent to 8,440 yen while chip-making equipment manufacturer Tokyo Electron jumped 4.52 percent to 46,420 yen. SoftBank Group gained 5.55 percent to 5,610 yen while Toyota rose 2.25 percent to 2,135 yen. Tokyo markets were closed on Thursday for a public holiday.