RTTNews - The Nikkei rose to a new 10-month intra-day high on Friday morning as stocks, led by those from steel, non-ferrous metals and machinery sectors, rallied sharply in the Japanese market amid rising hopes that economies around the world are headed for a recovery.

The Nikkei, which rose to 10,630 earlier this morning, is currently trading at 10,616, up 99.2 points or 0.94% over its previous close. The benchmark had ended with a gain of 82.2 points or 0.79% at 10,517 on Thursday.

Non-ferrous metals stocks SUMCO, Sumitomo Metal Mining, Toho Zinc, Mitsui Mining, DOWA Holdings and Furukawa are trading notably higher.

Among machinery stocks, Ebara Corp. is trading higher by over 6%. Hitachi Construction Machinery, Daikin Industries, JTEKT Corp., NSK, NTN Corp. and Okuma are trading up by 1% - 3%.

Shares of trading companies Mitsubishi Corp., Mitsui, Toyota Tsusho, Marubeni Corp. and Itochu are up sharply this morning.

Bank stocks are trading mixed. Chemicals and pharmaceuticals are also exhibiting a mixed trend. Automobile stocks are trading modestly higher.

Shares in Digital Garage Inc. opened bid-only today before going limit-up to 105,500 yen, a year-to-date high. On Thursday evening, the Internet solutions provider said it has agreed to a capital and business alliance with Culture Convenience Club Co.

In the currency market, the U.S. dollar traded in the lower 95-yen zone early Friday in Tokyo, down from its levels overnight in New York. The dollar fetched 95.27-32 yen against Thursday's close of 95.43-53 yen and 96.37-40 yen in Tokyo. The yen is currently trading at 95.23 to the U.S. dollar.

Among other markets in the Asia-Pacific region, Australia, Korea and Taiwan are trading sharply higher. Singapore and New Zealand are also trading in positive territory with notable gains. Stock markets across the region had closed higher on Thursday.

On Wall Street, stocks managed to post modest gains overnight despite largely disappointing retail sales and jobs reports contributing to some uncertainty in the markets. Stocks saw some upside following the results of the Treasury Department's US$15 billion sale of thirty-year bonds.

The Dow finished up by 36.58 points or 0.4% at 9,398, the Nasdaq moved up by 10.63 points or 0.5% to 2,009 and the S&P 500 edged up by 6.92 points or 0.7% to 1,013.

Major European markets also closed on the upside, with the German DAX index and the U.K.'s FTSE 100 index posting gains of 1% and 0.8% respectively, while the French CAC 40 index ended up by 0.5%.

Crude oil finished modestly higher on Thursday as data showed the German and French economies saw growth in the second quarter, boosting the outlook for global energy demand. A weaker dollar also improved oil's hedge value. Light sweet crude closed at US$70.52 per barrel, up 36 cents on the session. Oil touched as high as US$72.21 earlier.

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