RTTNews - The Japanese market opened sharply higher on Tuesday as investors tracked the overnight surge on Wall Street and lapped up stocks cutting across sectors with renewed vigor. Reassuring manufacturing data and firm commodity prices had buoyed up Wall Street yesterday and echoing the sentiment, markets across the Asia-Pacific region are up sharply this morning. A series of better-than-expected quarterly results from leading Japanese firms and a weaker yen are also contributing to the buoyant mood.
The Japanese benchmark index Nikkei, which rose to a new 10-month intra-day high this morning as it hit 10,479, is currently trading at 10,469, up 116.9 points or 1.13% over its previous close. On Monday, the Nikkei had ended lower by 4.36 points or 0.04% at 10,353.
Bank stocks are trading firm tracking overnight rally in the sector in the European and U.S. markets. Mitsubishi UFJ Financial is trading higher for the third straight day. The stock, which rose to a new year-to-date high this morning, is up by over 3% now. Sumitomo Mitsui Financial, Resona Holdings, Chiba Bank, Sumitomo Trust and Banking, Bank of Yokohama, Mizuho Financial, Shinsei Bank and Mizuho Trust & Banking are all trading with notable gains.
In the automobile space, Toyota Motor, Honda Motor, Hino Motors, Mazda Motor, Nissan Motor and Isuzu Motors are up by 1% - 3%.
Shares of trading firms Mitsubishi Corp., Mitsui & Co. and Toyota Tsusho Corp are trading higher. Nomura Holdings, Matsui Securities, Daiwa Securities and Mizuho Securities are also up with notable gains.
Steel stocks JFE Holdings, Sumitomo Metal and Nippon Steel are trading firm. In the non-ferrous metals space, Fujikura, Sumitomo Electric Industries, DOWA Holdings and Nippon Light Metals are up sharply in positive territory.
Construction and chemicals stocks are mostly trading higher. Pharmaceuticals and foods are trading mixed.
Panasonic Corp. hit a new year-to-date high of 1,541 yen this morning following the company raising its April - September earnings outlook. However, after the heady start, the stock has pared most of the gains and is currently trading just modestly higher than its previous closing price.
In the currency market, the U.S. dollar traded at the lower 95-yen level early Tuesday in Tokyo, down slightly from its levels overnight in New York. The yen is currently trading at 95.23 to the U.S. dollar compared to its Monday's close of 95.22-32 yen in New York.
Among other markets in the Asia-Pacific region, Australia and New Zealand are trading sharply higher with their key indices gaining 1.6% and 1.9%, respectively. Singapore, Taiwan and Korea are also trading firm with notable gains. Stock markets across the region had finished Monday's trading mostly higher.
Fueled by better-than-expected economic data, stocks surged higher on Wall Street on Monday. The Nasdaq and the S&P 500 moved past the key technical levels of 2,000 and 1,000, respectively.
A report from the Institute for Supply Management showed a much slower than expected pace of contraction in manufacturing activity in July and significant improvements in new orders and production. Data from the U.S. Commerce Department revealed that construction spending rose 0.3% percent in June following a revised 0.8% slide in May. Economists were expecting a decline of 0.5% for the month.
The Dow closed up by 114.95 points or 1.3% at 9,287, the Nasdaq ended up 30.11 points or 1.5% at 2,009 and the S&P 500 moved up by 15.15 points or 1.5% to 1,003.
Major European markets closed notably higher, with the French CAC 40 index and the German DAX index posting gains of 1.5% and 1.8%, respectively, while U.K.'s FTSE 100 index gained 1.6%.
Crude oil continued its upward surge on Monday, extending a seven-week high. Encouraging economic data improved the prospect of energy demand. Light sweet crude for September delivery rallied to US$71.58, up US$2.13 on the session. Prices reached as high as US$72.10 earlier in the day.
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