RTTNews - The stock market in Japan ended in positive territory on Friday following earnings reports from the companies that raised the confidence that the Japanese economy is bottoming out. The benchmark Nikkei rose to a new 10-month high with all the sectors posting gains in the rally.
In the U.S., stocks ended the previous session at the best levels for the year despite some profit taking, encouraged by data related to weekly jobless claims and continuing claims, as well as respectable results for the 7-year note auction.
The Dow finished up by 83.74 points or 0.9% at 9,154, the Nasdaq advanced by 16.54 points or 0.8% to 1,984 and the S&P 500 rose by 11.60 points or 1.2% to 987.
The Nikkei 225 Average opened higher at 10,275 compared to its previous close of 10,65 following upbeat earnings and forecasts from company that increased the confidence the Japanese economy is showing signs of bottoming out and can change direction towards recovery. The index traded much above the unchanged line throughout the session and finally ended with a gain of 191.62 points, or 1.89% at 10,357. The broader Topix Index of all first section issues ended up 13.32 points, or 1.42% percent, to 950.
On the economic front, data released by the Ministry of Internal Affairs and Communication showed that consumer prices dipped 1.8% year-on-year in June, faster than the 1.1% fall in the preceding month. Core consumer prices, which exclude fresh food prices, also dropped at a record pace, by 1.7% June, following the 1.1% fall in the preceding month. Economists had expected a 1.8% decline. A separate government report revealed that Unemployment rose to 5.4% in June, an increase of 0.2% from May,
Light sweet crude oil for September delivery ended the Asian trading session at $67.70, up $0.76 from its previous close in New York at $66.94 a barrel on Thursday.
Better-than-expected earnings from Sony Corp and Mitsui Fudosan, as well as weakening of the local currency against the dollar lifted trader sentiment.
Sony Corp., surged up 6.79% after reporting net loss for the first quarter that was sharply lower than the analysts' expectations. Among others, Tokyo Electron gained 4.20%, Fanuc added 1.70% and Canon rose 3.52%.
Mitsui Fudosan, the largest property developer in the country, rose 5.01% after reporting net profit for the first quarter that more than doubled. Among others in the sector, Sumitomo Realty & Development soared 6.50% and Mitsubishi Estate Co. gained 5.34%.
Banking stocks also ended in positive territory on recovery hopes. Mitsubishi UFJ Financial rose 4.80%, Mizuho Financial added 0.94%, Resona Holdings advanced 1.16% and Sumitomo Mitsui Financial edged up 0.50%.
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