RTTNews - The stock market in Japan ended sharply higher on Monday following Wall Street gains, on increasing optimism about recovery after Federal Reserve Chairman said that prospects for a return to growth in the near term appear good.
The benchmark Nikkei 225 Index ended at 10,581. representing a gain of 342.85 points, or 3.4%, while the broader Topix index of all first section stocks advanced 22.93 points, or 2.40%, to 970.
Light sweet crude oil price for October delivery ended at $74.30 a barrel in electronic trading, up $0.31 from its previous close $73.89 a barrel in New York on Friday.
Most of the stocks ended in positive territory following better-than-expected home sales data in the U.S and strong trading across other markets in the Asian region.
Automakers gained on prospects of recovery in its largest export market, the U.S. Toyota Motor Corp., advanced 2.26%, Honda Motor rose 3.21%, Isuzu Motors surged up 8.42% and Hino Motors gained 4.99%.
Among exporters, Canon Inc. soared 6.29% following the weakening of the local currency against the U.S. Greenback.
Trading stocks advanced following rise in commodity prices in the International market on Friday. Mitsubishi Corp. advanced 3.85%, Sumitomo Corp. gained 3.28%, Toyota Tsusho Corp. surged up 4.68% and Mitsui & Co rose 2.45%.
Energy stocks advanced following rise in crude oil prices in the international market. Nippon Oil Corp. gained 2.26%, Showa Shell advanced 2.80% and Nippon Mining holdings rose 2.51%. Inpex Corp. surged up 5.42%$.
Bank stocks also ended in positive territory on increasing prospects of global recovery. Mitsubishi UFJ Financial Group gained 1.70%, Mizuho Financial rose 2.23%, Resona Holdings added 1.18% and Sumitomo Mitsui Financial advanced 1.74%.
In the U.S., stocks ended in positive territory for the fourth straight session on Friday following comments from Federal Reserve Chairman Ben Bernanke, who said that Economic activity appears to be leveling out, both in the United States and abroad, and further noted that the prospects for a return to growth in the near term appear good.. Separately a report on home sales released by the National Association of Realtors revealed that existing home sales rose 7.2% to an annual rate of 5.24 million units in July from a 4.89 million unit rate in June. Economists had been expecting a more modest increase to a 5.0 million unit rate.
The Dow closed up by 155.91 points or 1.7% at 9,506, the Nasdaq climbed by 31.68 points or 1.6% to 2,021 and the S&P 500 rose by 18.76 points or 1.9% to 1,026.
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