[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Tokyo stocks opened higher on Friday, supported by US rallies on eased concern over bank failures and jumps in stocks after the European Central Bank lifted rates.
The benchmark Nikkei 225 index was up 0.69 percent, or 186.12 points, to 27,196.73 in early trade, while the broader Topix index added 0.68 percent, or 13.11 points, to 1,950.21.
“Uncertainty around the US and Europe banks sector remains elevated,” said Stephen Innes, managing partner of SPI Asset Management.
“Still… markets today exhibit at least an incremental comfort level as stocks rise and bonds fall.”
The dollar fetched 133.49 yen in early Asian trade, against 133.69 yen in New York late Thursday.
Overnight, Wall Street stocks finished solidly higher after a consortium of major US private banks announced a $30 billion rescue package for embattled lender First Republic.
There have been fears surrounding First Republic in the wake of Silicon Valley Bank’s rapid collapse last week. Both lenders had a heavy share of uninsured deposits that were vulnerable to a run by depositors.
Meanwhile, investors had hoped the European Central Bank would reduce the scale of its interest rate hike, or even pause it over fears about the banking system.
But the bank raised its main rates by half a percentage point as it had previously pledged to do.
It did, however, drop a reference used in previous statements to the need to raise rates “significantly” going forward, and ECB chief Christine Lagarde refused to commit to further hikes, although she said more were needed.
Investors are still digesting the ECB announcements, while their focus is shifting to the US Federal Reserve meeting next week, Innes said.
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Airlines were higher in Tokyo, with ANA Holdings trading up 1.16 percent at 2,749.5 yen and Japan Airlines up 1.53 percent at 2,528 yen.
Major banks were also higher, with Mizuho Financial Group trading up 1.04 percent at 1,851.5 yen and Mitsubishi UFJ Financial up 0.62 percent at 842.8 yen.
But tech investment giant SoftBank Group was down 0.61 percent at 4,867 yen.
Nippon Steel was up 0.70 percent at 3,023 yen. Panasonic was up 0.56 percent at 1,166.5 yen.[/vc_column_text][/vc_column][/vc_row]
