RTTNews - Boosted by higher oil prices and a weaker yen, stock prices moved up sharply in the Japanese market on Tuesday. The overnight gains on Wall Street too aided sentiment to a marked extent.
The benchmark Nikkei 225 Index opened at 9,896.56, up 113 points or 1.16%. Gaining further ground in subsequent trades, the index sailed past the psychological 10,000 mark and is currently up by as much as 198.93 points or 2.03% at 9,882.40.
The Nikkei 225 Average had ended weaker by around 94 points or 0.95% at 9,783 on Monday.
Investors are picking up key automobile stocks Toyota Motor and Honda Motor this morning on expectations of a recovery in new auto sales in the U.S. Among other stocks in the automobile space, Suzuki Motor, Nissan Motor, Hino Motors and Mazda Motor are trading with notable gains.
Among bank stocks, Sumitomo Mitsui Financial, Chiba Bank, Bank of Yokohama, Chuo Mitsui Trust Holdings, Fukuoka Financial Group, Resona Holdings, Shizuoka Bank, Sumitomo Trust and Banking, Mitsubishi UFJ Financial and Mizuho Financial Group are trading higher today.
Insurance, pharma, textiles stocks are trading sharply higher. Almost all key machinery and electrical machinery stocks are trading firm this morning. Steel and non-ferrous metals are trading stronger and construction, foods and chemicals stocks are also up sharply today.
Shares of Cannon Inc. bounced back in early trading this morning thanks to a weaker yen. The stock was also buoyed up by reports about the company's plans to absorb the semiconductor exposure device operations of sales subsidiary Canon Marketing Japan Inc. next January. However, after a bright spell in positive territory, the Cannon stock has slipped into the red and is currently down with a modest loss.
On the economic front, according to a release from the Ministry of Internal Affairs and Communications, Japan's unemployment rate rose to 5.2% in May from 5.0% in April.
Also, a survey released by Ministry of Internal Affairs revealed that spending by Japanese households of two or more people increased 0.3% year on year in May, marking the first increase after declining for as many as 14 months in a row.
In the currency market, the U.S. dollar traded in the lower 96 yen range early Tuesday in Tokyo, a tad higher than its late Monday quotes in New York. Currently, the yen is trading at 95.95 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia, Korea, Singapore and Taiwan are trading sharply higher with their benchmark indices moving up by 1.15%-2%. The New Zealand market is trading modestly lower.
Shrugging off some choppy movements, stocks ended higher on Wall Street as investors indulged in some bargain hunting despite any prominent triggers. However, volumes were rather thin as some traders chose to stay on the sidelines ahead of the release of key economic data later in the week.
The Dow ended 90.99 points up at 8,529.38, the Nasdaq closed up 5.84 points at 1,844.06 and the S&P 500 edged up 8.33 points to 927.23.
Stock markets across the Asia-Pacific region had ended Monday's session on the downside. However, major European markets closed notably higher, with the German DAX Index and French CAC 40 Index rising 2% and 2.3 percent, respectively, while the U.K.'s FTSE 100 Index closed up 1.3%.
Oil prices jumped on tensions in crude-producing Nigeria and on China's reported plans to rapidly increase its strategic crude oil reserves. Reports over the weekend said that China planned to increase strategic crude oil reserves by 60% to 270 million barrels during the next five years. New York's main futures contract, light sweet crude for August, moved up by US$2.33 from its closing price on Friday to end at US$71.49.
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