Tokyo stocks open higher after Wall St rally

Tokyo stocks open higher after Wall St rally
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Tokyo: Tokyo stocks opened higher Friday, a day after plunging 3.7 percent, with sentiment buoyed by a rally on Wall Street.

The benchmark Nikkei 225 index turned up 0.60 percent or 126.75 points, to 21,395.48 in early trade while the broader Topix index was up 0.59 percent or 9.37 points at 1,610.29.

Wall Street rebounded strongly on Thursday from the prior session’s rout on fears over slowing corporate earnings growth.

Tech shares led a broad-based rally following a series of mostly good earnings reports.

“Excessive caution over (US) business outlooks has eased,” Okasan Online Securities chief strategist Yoshihiro Ito said.

“The Tokyo markets will test a rebound as US stocks went up after the recent drops,” he said in a note.

The dollar was trading at 112.31 yen compared with 112.37 yen in New York Thursday afternoon.

In individual stocks trade, Sony rose 1.95 percent to 5,984 yen and IT investor SoftBank Group gained 0.97 percent to 8,886 yen.

Canon tumbled 3.59 percent to 3,275 yen after the camera and copier maker revised down its profit-growth estimate for this year.