Tokyo,:Tokyo’s key Nikkei index surged over three percent shortly after the open on Thursday, tracking global rallies on a US Fed rate hike and another pullback in oil prices.
The Nikkei rose 3.14 percent or 808.34 points to 26,570.35 in first 15 minutes of trading, while the broader Topix index added 2.39 percent or 44.35 points to 1,897.60.
Investors cheered as the US Federal Reserve raised interest rates in the Federal Open Market Committee (FOMC) as widely expected, lifting US shares.
“The Tokyo market is seen enjoying continued upward momentum. There was no negative surprise at FOMC. Wall Street shares ended higher across the board… These should serve as positive factors for Tokyo shares,” Okasan Online Securities said in a note.
“The Ukraine situation remains uncertain but there are also lingering hopes for ceasefire negotiations between Ukraine and Russia.
“Rises of oil prices and other commodity prices are slowing down,” the brokerage said, adding that an index for expected market volatility was also seen peaking out.
“These factors should encourage buyback of major blue chip shares,” Okasan said.
