RTTNews - The stock market in Japan ended in positive territory for the sixth consecutive day on Wednesday, mirroring the gains on Wall Street and increasing optimism about global economic recovery. A lack of buying support at higher levels ahead of key economic data in the U.S and profit taking limited the gains, although the broader outlook still remains bullish.
In the U.S., a report from the National Association of Realtors showed that pending home sales index rose 6.7% to 90.3 in April from a reading of 84.6 in March. Economists were expecting a modest 0.5% increase in the index for April. The increase came as homebuyers responded to very favorable market conditions.
The Dow finished up by 19.43 points or 0.2% at 8,741, the Nasdaq closed up 8.12 points or 0.4%, at 1,837 and the S&P 500 finished up by 1.87 points or 0.2% at 945.
The Nikkei 225 Average opened higher by 20 points at 9,724 compared to its previous close at 9,704, mirroring the gains on Wall Street. The index treaded in a narrow range between 9718 and 9774 amid alternate bouts of buying and selling before finally closing at 9,742, a gain of 37.36 points, or 0.38%. The broader Topix Index of all first section issues edged up 0.94 points, or 0.10% to close at 915.
There were no major domestic economic reports due out in today's session
Crude oil prices gained $0.18 and ended at $68.73 a barrel in Asian trading. Light crude oil price for July delivery closed at $68.55 in New York Mercantile Exchange on Tuesday on increasing optimism about global recovery.
Asahi Glass gained more than 5% and Nippon Electric Glass gained more than 8% after JP Morgan Chase raised the rating for glassmakers to overweight on expectations of higher sales following recovery in demand for flat-screen materials.
Chemical stocks advanced on expectations that possible mergers in the industry might result in higher profits. Mitsui Chemicals added 1.70%, Mitsubishi Chemical Holdings gained 0.90% and Tosoh Corp rose 0.96%.
Automakers also advanced, with Honda Motor gaining 1.95% and Toyota Motor adding 1.30%. However, Nissan Motor remained unchanged at previous close.
Financial stocks ended in negative territory following drop in their peers on Wall Street. Mitsuibishi UFJ lost 1.13%, Mizuho Financial slipped 1.26%, Resona Holdings shed 0.83% and Sumitomo Mitsui edged down 0.27%.
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