The Japanese stock market is trading in positive territory on Monday morning, led by banks and exporters on expectations of revival in the economy following the announcement of the third stimulus plan by the Japanese Prime Minister Taro Aso on Friday. The markets in the U.S. and Europe were closed for holiday on Friday.
On Thursday, the major indices on Wall Street surged up more than 3% following positive quarterly results from Wells Fargo, raising hopes that that the financials were not a lost cause. Additionally, some better-than-expected economic data contributed to the improved sentiment. The Dow closed up 246.27 points or 3.14% at 8,083, the Nasdaq closed up 61.88 points or 3.89% at 1,653 and the S&P 500 closed up 31.40 points or 3.81% at 857.
In Asian trading, crude oil is currently down $0.42 at $51.82 a barrel in electronic trading. Light sweet crude for May delivery rose about 6% or $2.86 to $52.34 a barrel on Thursday, following better-than-expected results from retailers suggesting a possible rise in consumer spending.
The benchmark Nikkei 225 Index, having opened weaker at 8,930 compared to its previous close of 8,965, is currently trading at 8,995, up 31.28 points, and the broader Topix index of all First Section Issues is gaining 4.12 points to 850.
In the currency market, the U.S. dollar is quoted in a range of 100.36-100.38 yen, down 0.09 yen from Friday's close.
On the economic front, a report released by the Bank of Japan showed that Japan's corporate goods prices index or the producer price index fell 0.2% month-over-month in March, in line with the expectations. During February, the index declined 0.5%. Producer prices have been seeing a declining trend since September 2008.
Exporters and trading houses are moving to the upside. Among the major exporters, Canon is gaining 1.57%, Sony is adding 0.97% and Sharp is moving up 0.98%. Trading houses are also rising. Mitsubishi Corp. is advancing 2.78%, Sumitomo Corp. is rising 2.03% and Itochu is gaining 4.03%.
Automakers are also advancing. Honda Motor is gaining 0.98%, Isuzu Motors is surging UP 6.45% and Toyota Motor is adding 0.77%.
Mixed trend is being witnessed among financials. Mitsubishi UFJ is gaining 3.48%, Mizuho Financial is edging up 0.51%, and Resona Holdings is adding 1.34%. However, Sumitomo Mitsui is losing 0.96%, and brokerage Nomura Holdings is edging down 0.63%.
Oil stocks are trading mixed. While Inpex is edging up 0.28%, and Nippon Oil is adding 0.79%, Showa Shell is losing 0.65%.
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