Tokyo shares opened higher on Monday after a mixed close on Wall Street as fears grew that interest rate hikes by central banks could trigger a global recession.
The benchmark Nikkei 225 index was up 0.71 per cent, or 183.42 points, at 26,146.42 in early trade, while the broader Topix index was up 0.51 per cent, or 9.38 points, at 1,845.28.
“Uncertainty over the US economy is destabilizing US and Japanese financial markets, so Tokyo stocks will remain volatile until US markets calm down,” Okasan Online Securities said.
However, Tokyo shares are being supported by “positive factors such as a sound demand-supply balance (for stocks) and the resumption of economic activity in Japan” following a pandemic slowdown, the brokerage said.
The dollar edged up 135.30 yen in early Asian trade, down from 134.99 yen in New York and 134.01 yen in Tokyo on Friday when the Bank of Japan said it would maintain its super-lax monetary policy, bucking a trend of global tightening.
The BoJ also said it would pay “due attention” to forex markets as the yen struggles around a 24-year low.
Among major stocks in Tokyo, SoftBank Group rose 2.36 percent to 4,901 yen, airline ANA Holdings rose 1.97 percent to 2,457.5 yen and Toyota rose 2.40 percent to 2,112.5 yen.
Commodity-linked stocks were lower, with oil giant Enos down 3.40 per cent at 520 yen, Nippon Steel down 1.07 per cent at 1,950.5 yen and Sumitomo Metal Mining down 2.06 per cent at 4,715 yen. .