Tokyo stocks opened 2022 on an upbeat note Tuesday, after US shares also advanced on their first trading day of the year.
The Nikkei 225 rose 1.01 percent, or 291.01 points, to 29,082.72 in early trade, while the broader Topix index added 0.88 percent, or 18.19 points, to 2,010.52.
The dollar stood at 115.31 yen, slightly off from 115.47 yen in New York overnight.
Tokyo reopened for the first trading day of the year after the Dow and S&P 500 on Wall Street ended at records Monday with investors cheering Apple’s valuation climbing to $3 trillion.
The pandemic and inflation continue to pose risks going forward, but expectations for bright corporate earnings should help drive up the Tokyo market through the year, Okasan Online Securities said in a note.
“We expect the Tokyo market to test its upside as we move through the year,” the brokerage said.
“We see a lot of profoundly uncertain factors ahead, such as new coronavirus variants, (potential) rate hikes and inflation.
“But Japan Inc is steadily regaining its strength and ability to earn profits again even amid the pandemic,” and share prices should reflect that, Okasan said.
The brokerage said it was “probable” that the market would remain lukewarm for several months until new annual corporate earnings outlooks become clear.
“We expect the market to test its upside especially in the latter half of the year” when investors should have clearer pictures of the outlook for corporate earnings in the year, Okasan said.
Among major shares, Sony Group jumped 2.42 percent to 14,825 yen. SoftBank Group firmed 0.70 percent to 5,472 yen.
Toyota roared 3.21 percent to 2,173 yen.
Chipmaker Murata Manufacturing added 1.23 percent to 9,270 yen while Advantest, a major producer of testing kits for semiconductors, jumped 3.12 percent to 11,240 yen.
Mitsubishi UFJ Financial Group firmed 0.85 percent to 630.2 yen.
But Fast Retailing, which operates Uniqlo, slipped 1.21 percent to 64,520 yen.
