TOKYO: Tokyo stocks ended higher Thursday on the back of a retreat in US bond yields, although investors were cautious ahead of a speech by Federal Reserve chief Jerome Powell.
The benchmark Nikkei 225 index was up 0.87 percent, or 276.95 points, to end at 32,287.21, while the broader Topix index rose 0.42 percent, or 9.54 points, to 2,286.59.
The dollar stood at 145.05 yen, against 144.80 seen Wednesday in New York.
US equities were buoyed by a drop in yields of the 10-year US Treasury note, which have hit multi-year peaks in recent sessions.
A key survey, meanwhile, indicated Wednesday further weakness in the eurozone economy, with the purchasing managers indexes for manufacturing and services both pointing to a contraction in the sectors.
But encouragingly for traders, the prospect of “lower interest rates on the back of the worsening of PMI data led to major US and European shares rallying across the board”, IwaiCosmo Securities said.
Coupled with blockbuster earnings results from chip giant Nvidia, this boosted investor sentiment in Tokyo.
Still, caution reins ahead of Powell’s speech at a keenly followed annual gathering of central bankers and business leaders at Jackson Hole, Wyoming, on Friday.
Among major shares in Tokyo, chip-making equipment manufacturer Tokyo Electron climbed 3.25 percent to 21,750 yen and chip-testing equipment maker Advantest rose 1.60 percent to 19,660 yen.
SoftBank Group surged 2.68 percent to 6,780 yen while Sony Group gave up 0.29 percent to 12,015 yen.
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