Tokyo shares opened higher Tuesday, as investors wait to hear Federal Reserve Chair Jerome Powell address the US Congress later this week.
The benchmark Nikkei 225 index rose 1.07 percent or 275.88 points at 26,047.10 while the broader Topix index added 1.20 percent or 21.78 points at 1,840.72.
The dollar stood at 135.08 yen, nearly flat from 135.08 yen in London. The US market was closed on Monday for a holiday.
“Risk sentiment is somewhat improved,” with US futures rising alongside European shares, as the market regains calm following recent selloffs partly triggered by the Fed’s sharp rate hike, Ray Attrill of National Australia Bank wrote in a note.
With the US market showing upwards momentum, “Tokyo shares should be solid today with expectations that US shares will also advance after a long weekend,” Okasan Online Securities said in a note.
The market is now looking to Congressional testimonies by Fed Chair Powell on Wednesday and Thursday amid expectations that the US central bank is poised to raise rates by 0.75 points in July, 0.50 points in September and 0.25 points in November and December, Okasan said.
“Still, there are elements of uncertainty as to the pace of rate hikes from September. The market will parse Chairman Powell’s comments and search for hints,” Okasan said.
Investors are also paying keen attention to top international officials voicing concern about the depreciation of their currencies.
After meeting with Prime Minister Fumio Kishida on Monday, Bank of Japan Governor Haruhiko Kuroda told reporters that they discussed the yen’s rapid fall.
Among major shares, Sony Group jumped 2.31 percent to 11,280 yen. SoftBank Group rose 1.38 percent to 5,001 yen.
Advantest, major producer of testing kits for semiconductors, climbed 1.82 percent to 7,270 yen. Nintendo rose 1.41 percent to 56,990 yen. Toyota added 1.63 percent to 2,123.5 yen.
