RTTNews - The stock market in Japan ended in positive territory following the release of positive domestic economic data and increasing hopes of stabilization and recovery by the global economy. Breweries led the gains after Credit Suisse revised its rating for the beverage industry in the country. Selective buying at lower levels following the recent slide from the psychological 10,000-mark also lifted stocks despite softening commodity prices.
In the U.S., stocks finished in the green snapping the three-day losses as investors preferred to stay on the sidelines amid a lull in economic data on the day, while looking forward to a slew of economic figures in the week beginning June 22.
While the Dow closed down 15.87 points or 0.2% at 8,540, the Nasdaq closed up 19.75 points or 1.1% at 1,827 and the S&P 500 closed up 2.83 points or 0.3% at 921.
The Nikkei 225 Average opened slightly higher at 9,788 compared to its previous close of 9,786, and advanced further on increasing optimism about a global recovery. However, profit taking in the afternoon session ahead of a spate of key economic reports and the FOMC meeting trimmed the gains. The index finally closed at 9,826, representing a gain of 40.01 points or 0.41%. The broader Topix Index of all first section issues ended at 922, up 3.51 points or 0.38%.
Crude oil prices ended almost flat at $69.54 a barrel in Asian trading. Light sweet crude oil finished at $69.55, down $1.82, on Friday in New York, amid concerns about demand.
On the economic front, a report released from the Ministry of Finance in Japan revealed that sentiment among large manufacturers rose to -13.2 in the second quarter compared to a reading of -66 in the previous quarter, marking the biggest gain on record. In a separate report, the Ministry of Trade, Industry and Economy stated that services activity is improving in the country following an increase in the tertiary industry index for April.
Breweries led the gains after Credit Suisse AG revised its ratings for the beverage industry from underweight to market weight on expectations of flat sales for the year. Sapporo Holdings soared more than 18%, while Kirin Holdings gained 1.84%.
Car makers advanced after a report revealed that the third largest car maker in the country, Nissan Motor is planning to build a factory in the U.S to manufacture electric cars. The stock advanced 5.6%. Fuji Electric Holdings gained 12% and Furukawa Electric advanced more than 7.5% following reports that the companies are planning to jointly develop a product which would help in increasing the life of the battery for hybrid cars.
Oil stocks declined on weaker crude oil prices. Inpex declined 2.35%, Nippon Oil slipped 0.35% and Showa Shell lost 0.68%.
Financial stocks ended mixed. While Sumitomo Mitsui gained 2.70%, Mitsubishi UFJ edged down 0.16%, Mizuho Financial fell 0.40% and Resona Holdings lost 0.65%.
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