TOKYO- Tokyo stocks rose 0.76 percent on Tuesday morning thanks to a weaker yen and following another record close for the Dow and S&P 500 on Wall Street.
The Nikkei 225 index at the Tokyo Stock Exchange added 126.75 points to 16,907.28 by the break, while the Topix index of all first-section shares climbed 0.37 percent, or 5.04 points, to 1,365.15.
The gains resume an upward trend in the index that has seen it put on more than 10 percent over the past two weeks, helped by the Bank of Japan’s decision to inflate stimulus programme.
Buying sentiment was boosted by the advances on Wall Street, where investors were still on a high after data Friday showed jobs creation remained healthy in October while the unemployment rate hit a six-year low.
The Dow rose 0.23 percent and the S&P 500 added 0.31 percent, both hitting records for a fourth successive session, while the Nasdaq was up 0.41 percent.
Currency rates hardly moved immediately after data Tuesday showed Japan posted a surplus in its current account for the third straight month in September.
The dollar bought 114.71 yen, slightly down from 114.83 yen in New York but well up from 114.16 yen in Tokyo earlier Monday.
“Global economic data are not necessarily encouraging for equity investors, but regional monetary policies are, especially with the prevailing low interest rate scenarios, which may have created a somewhat overbought environment,” said Daiwa Securities senior strategist Tsuyoshi Nomaguchi.
“Still, pertinent to Japan, with the Government Pension Investment Fund set to dramatically improve its domestic stock exposure, the latent demand could be enough to drive the market consistently higher though the end of the year,” he told Dow Jones Newswires.
Japan’s $1.26-trillion public pension fund — the world’s biggest — said last month it would double the amount of equities in its investment portfolio, as it seeks higher returns to cope with a rapidly ageing population.
In share trading, Toyota rose 1.17 percent to 6,791.0 yen, Sony was up 0.63 percent at 2,359.0 yen while Uniqlo clothing chain operator Fast Retailing jumped 1.42 percent to 42,020.0 yen.
Auto parts maker Takata fell 1.01 percent to 1,165.0 yen, a day after plunging nearly 17 percent in response to calls for a criminal investigation into an airbag defect that has been linked to at least four deaths in the US.