Tokyo stocks end higher after United States rallies

TOKYO (AFP): Tokyo shares closed higher on Monday following US rallies, but gains were kept in check as a surprise production cut announced by major oil powers weighed on the market. The benchmark Nikkei 225 index rose 0.52 percent, or 146.67, to end at 28,188.15, while the broader Topix index climbed 0.71 percent, or 14.18 points, to 2,017.68.

The dollar stood at 133.54 yen, against 132.82 yen in New York on Friday.
There was positive trading in Tokyo throughout the day, with investors reassured by data pointing to slowing inflation.

But their enthusiasm was tempered as oil powers led by Saudi Arabia announced a surprise production cut of more than a million barrels per day, calling it a “precautionary” move aimed at stabilising the market.

The reductions — on top of a Russian decision to extend a cut of 500,000 barrels per day, and despite US calls to increase production — risk stoking inflation and pressure to raise interest rates.

“Because of the inflationary impact of higher oil prices, the market is beginning to wipe the slate clean of Fed cuts,” Stephen Innes of SPI Asset Management said. “Long-duration assets like gold and some tech stocks have struggled today.”
IwaiCosmo Securities said that in Tokyo, too, “the news about (oil) reductions put pressure on rates to rise, weighing on growth stocks such as those related to semiconductors”.

Tokyo Electron, which builds tools to make chips, lost 2.05 percent to 15,710 yen, while Advantest, which makes semiconductor tests, plunged 4.27 percent to 11,640 yen.

Among other major shares, SoftBank Group added 0.69 percent to 5,218 yen, Sony Group was up 0.37 percent to 12,030 yen and Toyota gained 0.90 percent to 1,897 yen.

Uniqlo operator Fast Retailing surged 2.71 percent to 29,665 yen.