The Japanese stock market opened on a firm note Wednesday, buoyed by strong gains posted by Wall Street overnight. A weaker yen too contributed to the bright start.
Mining, pharmaceuticals, automobile, financial and non-ferrous metals stocks are mostly trading higher. Insurance, electric power and pulp & paper stocks are trading mixed.
The benchmark Nikkei 225 index is currently trading at 10,990, up 123.3 points or 1.1 percent from its previous close.
Yahoo Japan Corp. shares are up nearly 15 percent on a share buy-back plan. Central Japan Railway is up nearly 10 percent following a near 50 percent surge in net income.
Softbank Corp. shares, which gained over 4 percent in early trades following media reports of a likely surge in the company’s operating profit, are currently up 2.5 percent.
Kajima Corp., Chiyoda Corp., Mitsubishi Logistics, Nitto Boseki, Hino Motors, Mazda Motor, MS&AD Insurance Group, Olympus Group, Mitsui Engineering & Shipbuilding and Taiheiyo Cement are trading higher by 2 to 3.5 percent.
Oki Electric Industries, Sumitomo Realty & Development, Fast Retailing, Kawasaki Kisen Kaisha and Pacific Metals are also trading sharply higher.
Meanwhile, Fujifilm Holdings, Citizen Holdings, GS Yuasa, Mitsubishi Paper Mills, Mitsubishi Motors, Chubu Electric Power and Sumitomo Electric Industries are trading weak, losing 1 to 2 percent.
On the economic front, retail sales in Japan were up a seasonally adjusted 0.1 percent at 13.098 trillion yen in December, the Ministry of economy, Trade and Industry said Wednesday. That missed forecasts for an increase of 0.4 percent following the downwardly revised 0.1 percent contraction in November.
On a yearly basis, retail sales were up 0.4 percent – beating forecasts for a gain of 0.3 percent after adding a downwardly revised 1.2 percent in the previous month.
Sales from large retailers were flat on year at 2.105 trillion – also topping expectations for a decline of 1.0 percent after rising 0.9 percent a month earlier.
In the currency market, the U.S. dollar traded in the upper 90 yen level in early deals in Tokyo. The yen is currently trading at 90.88 to the dollar.
Among other markets in the Asia-Pacific region, Hong Kong, Indonesia, New Zealand and Singapore are trading notably higher. Australia, Shanghai and Taiwan are up with modest gains, while South Korea and Malaysia are trading flat.
On Wall Street, stocks closed mostly higher on Tuesday, with investors reacting positively to some latest earnings news. The Dow rose 72.5 points or 0.5 percent to 13,954.4, a five-year closing high. The S&P too hit a five-year closing high, finishing up 7.7 points or 0.5 percent, at 1,507.8, while the Nasdaq ended slightly lower at 3,153.7.
Major European markets closed higher on Tuesday. While the U.K.’s FTSE 100 index advanced by 0.7 percent, the German DAX index and the French CAC index inched up by 0.2 percent and 0.1 percent, respectively.
U.S. crude oil settled at a four-month high on Tuesday, due largely on supply concerns with geo-political tensions in the Middle East threatening to disrupt oil outflow. Crude for March delivery gained $1.13 or 1.2 percent to close at $97.57 a barrel on the New York Mercantile Exchange.
by RTT Staff Writer
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