Tokyo Stocks Climb Further on Cooler U.S. Inflation

TOKYO (Jiji Press) — Tokyo stocks gained further ground Monday, with sentiment brightened by a slowdown in U.S. inflation.

The Nikkei average of 225 selected issues listed on the Tokyo Stock Exchange’s Prime section rose 146.67 points, or 0.52%, to finish at 28,188.15, after advancing 258.55 points Friday.

The broader TOPIX index ended 14.18 points, or 0.71%, higher at 2,017.68, following a 20.18-point gain the previous trading day.

Stocks leaped at the outset of fiscal 2023 trading after all three major U.S. market indexes extended their rallies to three days Friday.

“Slowed growth in U.S. personal consumption expenditures in February, released Friday, has fueled hopes for an end to the Federal Reserve’s tightening campaign or its shift to easing,” said Chihiro Ota, general manager for investment research and investor services at SMBC Nikko Securities Inc.

The TSE’s request Friday that listed companies with price-to-book ratios of below 1 improve the ratios “led to buying of bargain stocks, “ Ota also said.

Investors opted to pour funds into stocks in view of receding fear of systemic risk, Maki Sawada, strategist at Nomura Securities Co., pointed out.

However, the market failed to spiral up due to selling to lock in profits after the Nikkei retook the psychological threshold of 28,000 the previous trading day, brokers said.