RTTNews - Aided by the overnight surge on Wall Street and a stronger U.S. dollar, the Japanese stock market opened on a firm note on Tuesday. Stocks across the board moved higher with those from non-ferrous metals, iron & steel and financial sectors leading the charge.
The Japanese benchmark index Nikkei 225, which opened nearly 83 points or 1.36% up at 9,173, is currently trading at 9,244, up 193.67 points or 2.16% over its previous close. On Monday, the Nikkei had dropped 236.95 points or 2.55% to close at 9,050.33, extending its losses to a ninth successive session.
Steel stocks JFE Holdings, Pacific Metals, Nippon Steel, Sumitomo Metal Industries and Kobe Steel are currently up by 3%-5%. Oil and gas developer Inpex Corp. is up by around 2.5%. Other oil stocks Nippon Mining Holdings and Showa Shell Sekiyu K.K. are also trading firm.
Among non-ferrous metals, Sumitomo Metal Mining, SUMCO, Toyo Seikan Kaisha, Sumitomo Electric Industries, Fujikura, Furukawa Electric, DOWA Holdings, Toho Zinc, Mitsui Mining, Furukawa, Nippon Light Metal and Mitsubishi Materials are all trading sharply higher today.
In the automobile space, Toyota Motor, Honda Motor, Suzuki Motor, Nissan Motor, Mazda Motor, Isuzu Motors and Hino Motors are up by 2%-6%.
Among bank stocks, Sumitomo Mitsui Financial, Sumitomo Trust and Banking, Mitsubishi UFJ Financial Group, Resona Holdings, Fukuoka Financial, Chiba Bank, Bank of Yokohama and Mizuho Financial are trading sharply higher. Other financial services stocks are also trading firm.
Construction and foods stocks are trading firm. Textiles are trading higher, with Nisshinbo Holdings, Mitsubishi Rayon, Toray Industries, Unitika and Toyobo recording sharp gains. Pharmaceuticals are trading mixed. Machinery and electric machinery stocks are mostly trading with strong gains, while rubber and paper products are surging higher. Insurance, real estate and communications stocks are trading higher as well.
Shares of GS Yuasa Corp. declined after a positive start, extending its slide for a third straight day, on concerns the company's move to raise around 37 billion yen by a public offering of up to 46 million new shares will significantly dilute the value of existing shares. However, with investors making some purchases at lower levels, the stock is trading in positive territory with a modest gain now.
In the currency market, the U.S. dollar traded in the lower 93 yen range early Tuesday in Tokyo, up from its overnight levels in New York, on expectations that major U.S. financial institutions will show a healthy performance. The yen is currently trading at 92.84 to the U.S. dollar.
Among other markets in the Asia-Pacific region, Australia is trading sharply higher, with its key indices S&P/ASX 200 and the All Ordinaries gaining nearly 2.25%. Singapore, Taiwan, Shanghai and Korea are also trading with sharp gains. The New Zealand market is trading modestly higher. Markets across the region had ended sharply lower on Monday.
Amid positive analyst comments on the financial sector, Wall Street surged higher on Monday with bank stocks leading the way. The major averages saw some further upside going into the close, ending the session at their best levels of the day. The Dow closed up by 185.16 points or 2.3% at 8,331.68, the Nasdaq moved up by 37.18 points or 2.1% percent to 1,793.21 and the S&P 500 rose by 21.92 points or 2.5% to 901.05.
Major European markets closed firmly on the upside, with the German DAX Index and the French CAC 40 Index finishing up by 2.9 percent and 2.3 percent, respectively. The U.K.'s FTSE 100 Index also rose, posting a gain of 1.7 percent.
Crude oil prices drifted lower on Monday on concerns that a gloomy economic outlook could curb energy demand. On the New York Mercantile Exchange, light crude for August delivery slipped 20 cents from Friday's market close to end at US$59.69 a barrel.
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