Tokyo stocks rose on Thursday, buoyed by an overnight climb on Wall Street that reflected latest interest rate projections by the U.S. Federal Reserve.
The 225-issue Nikkei average surged 302.42 points, or 1.01%, to finish at 30,216.75, ending above 30,000 for the first time since Feb. 25. The key index gave up 6.76 points Wednesday.
The Topix index of all first section issues closed 24.48 points, or 1.23%, higher at 2,008.51, finishing above 2,000 for the first time in about 30 years since May 1991. The index climbed 2.53 points the previous day.
Thanks to rises in all three major U.S. stock gauges on Wednesday, which came after the Fed signaled that it will maintain its near-zero interest rate policy until the end of 2023 in its so-called dot plot released after its Federal Open Market Committee meeting through the same day, a wide range of Tokyo stocks attracted buying from the outset of Thursday’s trading.
The Nikkei advanced over 500 points at one point in the morning. But the Tokyo market failed to extend gains in the afternoon, weighed down by profit-taking.
Both the Nikkei and Topix indexes fluctuated within a narrow range far above Wednesday’s closing levels amid a wait-and-see mood before the Bank of Japan’s two-day monetary policy meeting from Thursday, brokers said.
“Market participants were also relieved to hear (Fed) Chairman (Jerome) Powell directly saying at a press conference held after the (FOMC) meeting that the central bank will keep its monetary easing policy in place,” Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management Co., said.
A pause in the rapid rise of U.S. Treasury bond yields was another factor that boosted buying sentiment for Tokyo equities, Ichikawa added.
Meanwhile, some market sources said that the Tokyo market struggled to keep rising in the afternoon due to a mild strengthening of the yen against the dollar following a news report that the BOJ plans to allow the key Japanese long-term interest rate to move within a slightly wider range of between plus and minus 0.25%.
On the TSE first section, gainers far outnumbered decliners 1,444 to 654, while 97 issues were unchanged. Volume increased to 1.599 billion shares from Wednesday’s 1.252 billion shares.
Among cryptocurrency-related issues, online brokerage Monex Group skyrocketed 11.63%, in response to a news report that Morgan Stanley will be the first major U.S. bank to offer its wealthy clients access to Bitcoin funds.
Shikoku Electric climbed 6.26% after Hiroshima High Court retracted an order to halt a reactor at the power company’s Ikata nuclear plant in Ehime Prefecture.
Automaker Toyota and chipmaking equipment manufacturer Advantest also went up.
On the other hand, railway operator Keisei and beverage producer Asahi Group were among major losers.
In index futures trading on the Osaka Exchange, the key June contract on the Nikkei average climbed 340 points to end at 30,060.
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