TOKYO: Tokyo stocks climbed in early trade on Friday, tracking a positive lead from Wall Street and as a rally in oil prices lifted sentiment.
US equities ended modestly higher on Thursday, a day after minutes from the Federal Reserve’s July meeting suggested policymakers were not yet ready to go ahead with an interest rate hike next month.
Petroleum-linked shares got a boost after crude prices extended their rally Thursday following data showing a decline in US stockpiles, with Brent oil finishing above $50 a barrel for the first time in nearly two months.
In Tokyo, the jump in oil prices also boosted energy-linked shares, with Inpex up more than three percent in early deals and refiner JX Holdings gaining more than two percent.
About 20 minutes after the opening bell, the benchmark Nikkei 225 index climbed 0.47 percent, or 77.40 points, to 16,563.41, rebounding from the previous day’s 1.6-percent drop.
The broader Topix index of all first-section shares rose 0.41 percent, or 5.31 points, to 1,296.10.
“Stocks will recover some of the sharp losses it saw yesterday, taking cues from the mild gain in US shares, even though investors are likely to remain wary over the recent strength in the yen,” Juichi Wako, a senior strategist with Nomura Holdings, told Bloomberg News.
In forex markets, the Japanese currency eased somewhat against the dollar, with the greenback changing hands at 100.23 yen against 99.94 yen Thursday in New York.
A weaker yen is a plus for Japan’s exporters, as it boosts the overseas profitability of exporters. On Wall Street on Thursday, the Dow closed 0.1 percent higher, while the broad-based S&P 500 and tech-rich Nasdaq both rose 0.2 percent.
