RTTNews - After an extended weekend, the Japanese market opened on a bright note on Tuesday with a strong overnight close on Wall Street and hopes of an economic recovery pushing up stocks in early trading. Stocks across the board rallied at the start with those from banking, iron & steel and machinery sectors leading the charge.
The benchmark index Nikkei, which opened at 9,513, up nearly 1.25% over its previous close and moved on to 9,589, is currently trading at 9,539 with a sharp gain of nearly 144 points or 1.55%.
Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, Mizuho Financial, Resona Holdings, Chiba Bank, Shizuoka Bank and Bank of Yokohama are up by 1% - 3% this morning.
Steel stocks Pacific Metals, Nippon Steel, Sumitomo Metal Industries and Kobe Steel are trading higher by 2% - 4%.
Among non-ferrous metals, Toyo Seikan, SUMCO Corp., Sumitomo Electric Industries, Mitsui Mining and Mitsubishi Materials are trading with sharp gains. Machinery and electric machinery stocks are mostly trading firm.
In the automobile space, Toyota Motor, Suzuki Motor, Nissan Motor, Hino Motors and Mazda Motor are up by 2% - 3%.
Shares of Nippon Mining Holdings Inc. opened bid-only Monday, before rising 24 yen to 479 yen to extend their gains to a fifth straight trading day. On Saturday, it was reported that firm will likely post a group pretax profit of about 25 billion yen for the April-June quarter, a sharp turnaround from the 31.3 billion yen loss in the preceding three-month period. The stock is currently trading at 475 yen, up 4.4% over its previous closing price.
According to the minutes of the Bank of Japan policy board meeting held on June15-16, the board members agreed that economic conditions in Japan had stopped worsening, and that evidence of the economy's stability would be seen in coming months.
Opinions differed, however, over the bank's temporary corporate funding measures, with one member saying that corporate financing taken as a whole was becoming less tight, and the bank should therefore start considering specific ways to terminate the temporary and exceptional measures.
The BOJ upgraded its economic assessment at the June meeting for the second straight month, saying, economic conditions, after deteriorating significantly, have begun to stop worsening.
In the currency market, the U.S. dollar traded at the lower 94-yen level early Tuesday in Tokyo, after rising in overnight trading in New York on optimism sparked by reports that struggling moneylender CIT Group may avoid bankruptcy. In early trading this morning, the dollar fetched 94.11-16 yen compared with 94.13-23 yen at 5 p.m. Monday in New York and 93.70-72 yen late Friday in Tokyo. The yen is currently trading at 93.94 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia has pared early gains but is still trading in positive territory. Korea, New Zealand, Taiwan and Shanghai are also trading higher. The Singapore market is trading flat. Stock markets across the region had closed on the upside on Monday, with Hong Kong's Hang Seng Index surging up by 3.7%, while South Korea's benchmark KOSPI Index posted a gain of 2.7%.
Boosted by encouraging corporate earnings and reassuring news from CIT Group, which secured US$3 billion in financing from some of its largest bondholders, Wall Street ended on a firm note on Monday.
On the economic front, the Conference Board released a report showing that its index of leading economic indicators increased by more than expected in June, although both the coincident index and lagging index continued to decline.
The Dow moved up by 104.21 points or 1.2% to 8,848, the Nasdaq surged 22.68 points or 1.2% to 1,909 and the S&P 500 ended up 10.74 points or 1.1% at 951.
Major European markets closed notably higher, with the German DAX index and the French CAC 40 index finishing up by 1% and 1.6% respectively. The U.K.'s FTSE 100 posted a gain of 1.3%.
Continuing its surge for a fourth straight day amid hopes of a global economic revival, crude oil finished at US$63.98 a barrel on Monday, up 42 cents over Friday's close. Prices had earlier reached a thirteen-day high of US$64.90.
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