RTTNews - The stock market in Japan, which opened after a long weekend, ended in positive territory on Tuesday on hopes that the global economy will start recovering from the later part of the year. Technology stocks led the gains after Texas Instruments provided a better-than-expected outlook for the third quarter. Almost all sectors, except airlines, advanced during the session, with the announcement of the dissolving of the Lower House having little or no impact on the market movement.
In the U.S., stocks continued their northward march and ended sharply higher after reports suggested that lender CIT Group has succeeded in securing a $3 billion loan from a group of its major shareholders. The company confirmed the reports after the markets closed. Positive earnings results from Halliburton (HAL), M&T Bank Corp. (MTB), Hasbro (HAS), Eaton (ETN) and Johnson Controls (JCI), as well as better-than-expected economic numbers lifted trader sentiment.
A report released from the Conference Board revealed that that its index of leading economic indicators increased increased by 0.7% in June following an upwardly revised 1.3% increase in May. Economists had expected the index to increase by 0.5 percent compared to the 1.2 percent increase originally reported for the previous month.
Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, in a speech, predicted modest growth starting in the second half of the year, though he said there is not likely to be a strong recovery in the medium term.
The Dow advanced by 104.21 points or 1.2% to 8,848, the Nasdaq climbed by 22.68 points or 1.2% to 1,909 and the S&P 500 rose by 10.74 points or 1.1% to 951.
The Nikkei 225 Average opened sharply higher at 9,513 compared to its previous close of 9,395 and continued to advance. The market consolidated the gains and moved sidewards before witnessing a spurt in buying activity in late trading. The Nikkei 225 Average ended up 256.70 points, or 2.73%, at 9,652. The broader Topix Index of all first section issues gained 23.26 points, or 2.65% , to close 902.
Light sweet crude oil for August delivery ended the Asian trading session at $63.83, down $0.15 from its previous close in New York at $63.98 on Monday.
Machinery stocks advanced after a brokerage house upgraded the outlook for Hitachi Construction Machinery Co. The stock soared 9.47%. The Japan Steel Works rose 7.19%, Komatsu Corp gained 5.38% and Daikin Industries advanced 2.33%.
Trading houses also advanced on optimism about a recovery in the global economy. Mitsubishi Corp advanced 5.47%, Toyota Tsusho Corp surged up 6.37%, Mitsui & Co. rose 4.94% and Sumitomo Corp. gained 4.67%.
Automotive stocks advanced on weaker yen and hopes of a revival in the U.S, the biggest export destination for its products. Toyota Motor Corp. gained 3.13%, Honda Motor rose 3.03% and Suzuki Motor advanced 2.36%.
Mitsubishi Chemical Holdings Corp., the largest petrochemical producer in the country, surged up 8.1% after Merrill Lynch initiated coverage of the company with a 'Buy' rating.
Banking stocks also ended in positive territory on prospects of a recovery in the global economy. Mitsubishi UFJ Financial gained 3.54%, Mizuho Financial advanced 1.55%, Resona Holdings rose 4.17% and Sumitomo Mitsui Financial Group added 1.60%.
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