Tokyo stocks rise on Wall Street rally

July 03, 2023 (MLN): Tokyo stocks opened higher on Monday after Wall Street rallied on signs of inflation cooling, as APP reported.

The benchmark Nikkei 225 index was up 1.30%, or 431.73 points, at 33,620.77 in early trade, while the broader Topix index added 1.04%, or 23.74 points, to 2,312.34.

"Japanese shares are seen starting with gains following rallies in US stocks," Monex senior market analyst Toshiyuki Kanayama said in a note.

Investors were also watching the Bank of Japan's "Tankan" quarterly business confidence survey, which showed improved sentiment among large manufacturers.

Wall Street stocks concluded a winning quarter with a flourish on Friday, cheering better inflation data as Apple surged to a valuation of over $3 trillion.

All US three indices ended up in positive territory after the personal consumption expenditures index measure of inflation eased to 3.8% year-on-year in May, a significant drop from 4.3% a month earlier.

The Dow advanced 0.8% to 34,407.60, the broad-based S&P rose 1.2%, and the tech-rich Nasdaq closed up 1.5%.

The dollar fetched 144.27 yen in early Asian trade, against 144.33 yen in New York late Friday.

Ten minutes before the opening bell, the closely-watched Bank of Japan's quarterly business confidence showed modest improvements among large manufacturers and non-manufacturers.

Among major shares in Tokyo, Sony Group rallied 2.66% to 13,310 yen, Panasonic was up 1.25% at 1,775.5 yen, and Toyota was up 0.52% at 2,320.5 yen.

Nippon Steel climbed 1.20% to 3,040 yen. Shipping firm Mitsui O.S.K. Lines advanced 1.59% to 3,511 yen.

Chip-testing equipment maker Advantest rallied 3.32% to 19,785 yen, but SoftBank Group was down 0.53% at 6,737 yen.

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