Tokyo stocks extend global gains despite weak Japan GDP

Tokyo - Tokyo stocks opened higher on Thursday after Wall Street powered to fresh records, despite weak revised figures that showed Japan's economy grew less than expected in the third quarter.

Tokyo's benchmark Nikkei 225 index rose 175.96 points, to 18 672.65 in the first few minutes of trade, while the broader Topix index of all first-section issues was up 14.27 points, to 1 504.89.

Shortly before the opening bell, revised government data showed that the Japanese economy had grown 0.3% in July-September, weaker than a 0.5% initial estimate.

But investors largely brushed off the lacklustre data, taking a lead from overseas markets instead.

In the US, the Dow Jones Industrial Average surged to a record for the third straight session in the best day for Wall Street equities since the November 8 US election.

The Dow jumped 1.6% to 19 549.62.

The US rally has been sparked by hopes President-elect Donald Trump and the Republican-led Congress will enact policies that fuel stronger growth and loosen regulation in the world's biggest economy.

The European Central Bank (ECB) is widely expected to prolong massive monetary stimulus Thursday to spur an economy crimped by a rise in political uncertainty as exemplified by Trump's upset win, Brexit and the rise of the far right in Europe.

"There is a real risk of unpleasantness in European bond, equity and currency markets if (ECB chief Mario) Draghi doesn't at least meet expectations," Sharon Zollner, a senior economist in Auckland at ANZ Bank New Zealand, told Bloomberg News.

"The market is optimistic that the ECB will extend its quantitative easing program at current levels for a further six months."

In Tokyo, SoftBank shares roared again in the wake of Trump's announcement of a $50bn investment in the US by the telecoms giant.

The stock jumped nearly seven percent in early morning trade, after advancing more than six percent on Wednesday, with investors hailing CEO Masayoshi Son's meeting with Trump in New York.

On currency markets, the dollar edged down to ¥113.61, from ¥113.74 on Wednesday in New York.