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Tokyo Stocks Open Higher With Eyes on US-China Tensions

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Key Points

  • Tokyo stocks opened higher on Monday, helped by rallies on Wall Street but with investors warily watching US-China tensions over technology issues.
  • The benchmark Nikkei 225 index was up 0.76 percent, or 176.04 points, at 23,380.66 in early trade, while the broader Topix index gained 0.76 percent or 12.49 points to 1,646.72.
  • Weekend US reports said Washington had placed new curbs on exports to Semiconductor Manufacturing International Corporation (SMIC), China’s most advanced maker of computer chips.
  • Visit The Financial Today’s homepage for more stories.

Tokyo, Japan — Tokyo stocks opened higher on Monday, helped by rallies on Wall Street but with investors warily watching US-China tensions over technology issues.

The benchmark Nikkei 225 index was up 0.76 percent, or 176.04 points, at 23,380.66 in early trade, while the broader Topix index gained 0.76 percent or 12.49 points to 1,646.72.

“Japanese shares are starting with rallies supported by gains in US shares… but reports that the US has placed new restrictions on exports to Chinese chip-maker SMIC, in addition to the issues over Huawei, will be weighing on manufacturing shares,” Okasan Online Securities said in a commentary.

Weekend US reports said Washington had placed new curbs on exports to Semiconductor Manufacturing International Corporation (SMIC), China’s most advanced maker of computer chips.

The reports come as the US takes a harsher stance against Chinese technology companies that it has deemed a national security threat.

Meanwhile, a US federal judge late Sunday halted a politically charged ban ordered by the Trump administration on downloads of the popular video app TikTok, hours before it was to go into effect.

District Judge Carl Nichols issued a temporary injunction at the request of TikTok, which the White House has called a national security threat and has alleged that its Chinese parent firm is tied to Beijing.

In Tokyo, chip-testing equipment maker Advantest was down 2.53 percent at 5,000 yen, and chip-making equipment manufacturer Tokyo Electron was off 1.65 percent at 27,050 yen.

ANA Holdings dived 6.52 percent to 2,524 yen after a report said it is mulling offering stock worth 200 billion yen ($1.89 billion), while its rival Japan Airlines was down 5.01 percent at 1,963.5 yen.

Toshiba was down 3.66 percent at 2,688 yen after it said it had suspended plans to sell shares in its former chip unit Kioxia as the chip-maker postponed plans to go public next month.

The dollar fetched 105.58 yen in early Asian trade against 105.59 yen in New York late Friday.

On Wall Street, the Dow ended up 1.3 percent at 27,173.96.

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