Nikkei surges 4% after Wall Street recovery

Pedestrians walk past an electronic stock indicator displaying share prices of the Tokyo Stock Exchange. (Bloomberg pic)

TOKYO: Tokyo stocks surged nearly 4% at the open on Thursday, with investors heartened by Wall Street’s best performance in nine years.

The benchmark Nikkei 225 index jumped 3.80% or 733.58 points to 20,060.64 in early trade while the broader Topix index was up 3.94% or 56.33 points at 1,487.80.

“Thanks to the sharp rebound in US shares, it is increasingly possible that Japanese stocks will end the year on a bullish note,” Okasan Online Securities chief strategist Yoshihiro Ito said in a commentary.

Exporter shares rose strongly as a weaker yen improved their business outlook.

The dollar was trading at ¥111.17, down from ¥111.33 in New York but up from ¥110.45 when Tokyo closed on Wednesday.

Wall Street stocks roared back to life in post-Christmas trade on Wednesday, shaking off four straight routs following strong retail sales data and White House reassurances that Fed Chair Jerome Powell won’t be fired.

The Dow Jones Industrial Average finished up nearly 1,100 points, or about 5%, with the broad-based S&P 500 also surging 5%.

The US gains were the biggest for a single session on Wall Street in nine years, a surge analysts attributed in part to technical factors after days of selling.