Tokyo stocks open higher as Japan exits recession

People look at an electronic stock board showing Japan's Nikkei 225 index at a securities firm in Tokyo Thursday, Nov. 12, 2020. Stocks fell back across Asia on Thursday after gains for big technology shares pushed most Wall Street benchmarks higher. (AP Photo/Eugene Hoshiko)

• Japan’s economy exited recession in the third quarter

TOKYO: Tokyo stocks opened higher on Monday supported by gains on Wall Street with investors digesting Japan’s third-quarter GDP figures, which showed an exit from recession.
The benchmark Nikkei 225 index was up 1.13 percent or 286.11 points at 25,671.98 in early trade, while the broader Topix index gained 1.16 percent or 19.80 points to 1,723.02.
“Japanese shares are seen gaining on rallies on US stocks, while investors are closely watching Japan’s GDP figures for the July-September quarter,” which were released 10 minutes before the opening bell, Toshiyuki Kanayama, senior market analyst at Monex, said in a commentary.
Japan’s economy exited recession in the third quarter, growing a better-than-expected 5.0 percent thanks to a rise in domestic demand and exports, government data showed Monday, as signs of recovery began to emerge after a record contraction.
Traders are also awaiting China’s industrial output and retail sales due later in the day, Kanayama added.
The dollar fetched 104.69 yen in early Asian trade, against 104.62 yen in New York late Friday.
Among major shares in Tokyo, business cycle-sensitive stocks and some exporters were higher, with chip-making equipment maker Tokyo Electron rallying 2.29 percent to 31,740 yen, Sony trading up 1.81 percent at 9,326 yen and Toyota up 1.35 percent at 7,415 yen.
On Wall Street, the Dow ended up 1.4 percent to close at 29,479.81.