RTTNews - The Nikkei opened up 0.6% at 9,829 on Monday and hit its best mark for the year as it rose to 9,903, with a weaker yen triggering some strong buying in technology and automobile stocks.
Wall Street ended on a mixed note on Friday. However, with a smaller-than-expected decline in non-farm payrolls lifting hopes for a U.S. recovery, the dollar rose sharply against the yen, giving a fairly strong trigger for the Japanese stocks this morning.
The Nikkei is currently trading at 9898, up 130.29 points or 1.33% over its previous close. The benchmark had ended up by nearly 100 points or 1.02% at 9,768 on Friday.
Automaker Hondo Motor opened on a firm note and is currently trading 2.6% up. Toyota Motor, Suzuki Motor, Mazda Motor, Isuzu Motors, Fuji Heavy Industries, Mitsubishi Motors, Nissan Motor and Hino Motors are also gaining in strength.
Electrical machinery stock Cannon is up 3.7% on strong buying support. The stock had moved up sharply even in the previous session on the back of reports the firm will start building a digital camera plant in Nagasaki Perfecture next month.
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Kyocera Corp., Fanuc, Sony Corp., TDK Corp, Denso, Taiyo Yuden, Mitsumi Electric and Casio Computer are among the other stocks gaining ground in the electric machinery space.
Among bank stocks, Sumitomo Mitsui Financial, Resona Holdings, Shizuoka Bank, Mitsubishi UFJ Financial, Shinsei Bank, Mizuho Financial Group and Mizuho Trust & Banking are trading higher. Insurance stocks are up sharply.
Mitsubishi Heavy Industries is trading higher as China plans to provide financial assistance to wind turbine manufacturers and electric power companies. The Chinese government, it is reported, is planning to spend over 700 billion yuan (10 trillion yen) to boost its wind power output capacity to more than 100 million kilowatts by 2020, roughly eight times its current levels.
Chemicals, pharmaceuticals, steel and non-ferrous metals are mostly trading higher. Real estate and communications stocks are trading mixed.
The U.S. dollar traded in the upper 98 yen zone early Monday in Tokyo, little changed from its levels late Friday in New York. At 9 a.m., the dollar fetched 98.65-70 yen versus 98.60-70 yen at 5 p.m. Friday in New York and 96.71-73 yen late Friday in Tokyo. The dollar briefly hit 98.90 yen, its highest level there since early May. Currently, the yen is trading at 98.62 to the dollar.
Among other markets in the Asia-Pacific region, New Zealand, Shanghai and Taiwan are trading modestly lower while Korea is trading firm. The Singapore market is trading firm with modest gains. The Australian stock exchange is closed today on account of the Queen's Birthday.
On Wall Street, stocks finished Friday's trading mostly lower after a lackluster performance. The major averages ended the day on opposite sides of the unchanged line, as traders were cautious following an employment report indicative of some signs of life in the labor market.
The major averages finished the choppy session on a mixed note. While the Dow finished up by 12.89 points at 8,763.13, the Nasdaq slipped by 0.60 points to 1,849.42 and the S&P 500 edged down by 2.37 points to 940.09.
The stock markets across the Asia-Pacific region had finished notably higher on Friday. The major European markets also ended higher. The U.K.'s FTSE 100 Index finished up by 1.2 percent, while the French CAC 40 Index and the German DAX Index closed up by 0.8 percent and 0.2 percent, respectively.
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