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Japanese Market Advances Amid Bargain Hunting

The Japanese market opened on a firm note on Tuesday despite a negative lead from Wall Street, with investors picking up stocks after five successive days of losses. The yen's marginal decline against the U.S. dollar too contributed to the higher start.

Financial, real estate, textiles and insurance stocks opened higher and are still mostly trading in positive territory. Shares from gas, railway, communications and services sectors are trading mixed.

The benchmark Nikkei 225 index is currently trading at 9.635, up 88.7 points or 0.9 percent over its previous close.

UNY Co. Ltd shares are up nearly 8 percent. Ebara Corp is trading stronger by almost 6 percent.

Hitachi Construction Machinery, Advantest Corp, T&D Holdings, Dai-ichi Life Insurance, Nippon Light Metals, Matsui Securities, Fuji Heavy Industries, Taiyo Yuden, Kawasaki Heavy Industries and Sumitomo Realty & Development are all up 2.5 to 4 percent.

Nomura Holdings, Showa Denko KK, Sumco Corp, Mitsubishi Heavy Industries, Taiheiyo Cement and Sony Financial Holdings are also trading sharply higher. Mitsui Fudosan moved up after the company raised its earnings forecast.

Toyota Motor Corp shares are up nearly 2 percent after Nomura Holdings Inc. raised the stock's target price. Isuzu Motors, Hino Motors, Suzuki Motor, Nissan Motor, Honda Motor, Mazda Motor and Mitsubishi Motor are all up 2 to 4 percent.

In the banking space, SMFG, Mitsubishi UFJ Financial, Aozora Bank, Bank of Yokohama and Shinsei Bank are up 1 to 2 percent and Mizuho Financial is gaining nearly 2.5 percent, while Shizuoka Bank is trading modestly higher.

Meanwhile, Sharp Corp, Nippon Yusen, Osaka Gas, Chiyoda Corp, Takara Holdings, JX Holdings, Sony Corp and Yokogawa Electric are trading notably lower.

In the currency market, the U.S. dollar traded in the upper 81 yen range in early deals in Tokyo. The yen is currently trading at 81.81 to the U.S. dollar.

On Wall Street, stocks ended notably lower on Monday with traders reacting negatively to Friday's monthly jobs report.

Despite climbing off their worst levels of the day, the major averages ended the session firmly in the red. The Dow ended down 130.5 points or 1 percent at 12,929.6, the Nasdaq dropped 33.4 points or 1.1 percent to 3,047.1 and the S&P 500 slid 15.9 points or 1.1 percent to 1,382.2.

U.S. crude oil futures closed at a seven-week low on Monday amid demand concerns following some soft U.S. jobs data last week and a disappointing consumer price inflation report from China for March. Light Sweet Crude Oil futures for May delivery, dropped $0.85 or 0.8 percent to close at $102.46 a barrel on the New York Mercantile Exchange.

by RTT Staff Writer

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