TOKYO shares opened sharply higher today after US President Donald Trump said he no longer opposed government aid for Joe Biden’s transition team, with markets also buoyed by new vaccine news.

The Nikkei 225 index was up 2.62% or 667.77 points to 26,195.14 in early trade, playing catch-up after a long weekend with surges in other markets. The broader Topix index added 2.42% or 41.85 points to 1,769.24.

Tokyo markets were closed yesterday for a national holiday, so the today’s rise was partly expected after positive vaccine news and rises on other bourses worldwide.

But Australia’s ASX 200 index was also up 1% shortly after the open.

“The power vacuum in Washington looks to be sucking less life out of the markets after the General Service Administration (GSA) gave the nod to Biden as the apparent winner of the US election,” said Stephen Innes, chief global markets strategist at Axi, in a note.

Shortly before the opening bell in Tokyo, Trump tweeted that the GSA should start releasing federal funds and resources to start a transition, ending major uncertainty, although Trump has yet to concede defeat in the election.

“Nevertheless, in the best interest of our Country, I am recommending that (GSA administrator) Emily (Murphy) and her team do what needs to be done with regard to initial protocols, and have told my team to do the same,” Trump tweeted. 

The Tokyo market was already gearing up for a strong open as it returned to action after a three-day weekend, during which international markets surged on positive news about vaccines.

International investors have cheered news that British drugs group AstraZeneca and the University of Oxford will seek regulatory approval for their coronavirus vaccine, following similar announcements by Pfizer/BioNTech and Moderna.

Oil prices edged up in Asian morning trade, building on healthy gains the previous day sparked by the positive vaccine news.

US benchmark West Texas Intermediate was up 0.26% at US$43.17 (RM181.40) a barrel while the other benchmark, Brent Crude, rose 0.11% to US$46.11 a barrel.

Tokyo players also welcomed the rebound of the dollar, which stood at ¥104.62 against ¥104.54 in New York yesterday.

Overnight, the Dow Jones Industrial Average gained 1.1% to 29,591.27.

Players in Tokyo will be eyeing a two-day visit to Japan by Chinese foreign minister Wang Yi, as the two Asian giants conduct delicate diplomatic exchanges.

Japan and China recently signed a major Asia-wide free trade agreement called RCEP, boosting China’s economic influence. But their relations are heavily influenced by tensions between China and the US.

In Tokyo trading, exporters benefited as the yen headed lower, including the auto sector. 

Toyota rose 1.92% to ¥7,493 (RM294), Nissan added 2.61% to ¥498.5 and Honda rose 3.02% to ¥3,067. – AFP, November 24, 2020.