Tokyo stocks open higher on Monday

TOKYO: Tokyo stocks opened higher on Monday after Wall Street gains, with investors’ focus shifting to the US Federal Reserve’s policy decision later this week.

The benchmark Nikkei 225 index was up 0.82 percent, or 236.58 points, at 29,093.02 in early trade, while the broader Topix index added 0.74 percent, or 15.30 points, to 2,072.78.

The dollar fetched 136.39 yen, against 136.28 yen in New York, where the yen plunged further from Friday levels after the Bank of Japan stuck to its ultra-loose monetary policies.

“Global stock markets mostly rose Friday following modestly positive economic data in Europe and the United States, while the yen tumbled after the Bank of Japan maintained its easing policies,” said National Australia Bank strategist Rodrigo Catril.

Investors’ attention is shifting to the Federal Reserve decision on May 3, when “most analysts expect the Fed to again lift interest rates by a quarter-point… in response to inflation,” he said.

But Rakuten Securities chief strategist Masayuki Kubota said the Fed could “either hike rates by 0.25 percentage points, or stop rate hikes.”

“Either of the choices could come as a surprise for financial markets” as the Fed’s communication ahead of the meeting had not been enough to give clear clues, he said.

The Nikkei index “has been moving in a narrow range” in the past days due to uncertainties over the US economic outlook, Kubota said.

Most markets across Asia and Europe are closed on Monday for public holidays, but Wall Street trading will take place as usual. In morning trade, Sydney was up 0.7 percent while Wellington slipped 0.1 percent.

SoftBank Group was up 2.24 percent at 5,208 yen after it said its UK-based chip designer Arm has submitted “a draft registration statement” to the US Securities and Exchange Commission related to its planned initial public offering.

Astellas Pharma was up 0.98 percent at 2,068 yen after it said it would acquire US-based Iveric Bio for $5.9 billion.

Sony Group was down 3.82 percent at 12,340 yen after the company on Friday reported record annual sales for the year to March but predicted a lower net profit for the current financial year.